ISLAMABAD: Pakistan is taking policy measures to increase the ease of doing business in a bid to boost growth, investment and employment opportunities in the South Asian country, the country's finance adviser said on Sunday.
The South Asian country of more than 241 million people is currently navigating a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program since averting a default in 2023.
Besides introducing structural reforms relating to expansion of the country's tax base and privatization of loss-making entities, the government of Prime Minister Shehbaz Sharif is striving to boost foreign investment and trade.
Khurram Schehzad, an adviser to the finance minister, said the government has reduced energy costs from Rs38/unit to Rs23/unit, interest rate to 11% from an all-time high of 22% in June last year among other measures.
"The direction is clear: lowering the cost of doing business to make way for growth, investment and jobs," Schehzad said on X, adding that the tax structure has been rationalized, while the government is ensuring faster approvals and simpler procedures to increase regulatory ease for businesses.
Pakistani tax authorities have shifted their focus from salaried individuals and corporate sector to bringing people, who do not file their wealth statements, by increasing compliance and enforcement.
For the first time in 14 years, the South Asian country posted a current account surplus of $2.1 billion (0.5% of GDP) in the outgoing fiscal year 2024-25 that ended in June, marking a sharp turnaround from a $2 billion deficit in FY2023-24, driven by a 27% increase in remittances and a 16% drop in services deficit.
The government is now pursuing privatization, tax and energy sector reforms, and an accelerated digitalization drive to strengthen the economy. These measures are designed to improve fiscal stability and rebuild confidence among both investors and international lenders.
