While talking to media persons after speaking at the inaugural session of First Central Asia Regional Economic Cooperation (CAREC) Capital Market Regulators Forum on Thursday, the advisor said that improvement in ease of doing business has been the foremost priority of the government to attract foreign investors.
Replying to a question with regard to issuance of international bonds, the advisor on finance stated that the government would soon launch international bonds; however, neither did he give any timeframe in this regard, nor did he specify whether the bonds would be sukuk or euro.
He said that the present government gave a signal to the international community by going to the IMF programme that it is serious to pursue economic and fiscal discipline in the country. The advisor said it is unfair to criticise present government for taking Rs 7,600 billion loans, and one must take into account the state of the economy inherited by it and challenges that compelled it for taking loans. He said the criticism would be fair if one finds that extra spending was made by the government.
The government has to borrow for running the government affairs and meeting defence and development spending after entire tax collection of Rs 3.8 trillion was consumed under two heads - Rs 2.3 trillion go to provinces as part of their share from divisible pool agreed in the 7th NFC Award and Rs 2.1 trillion debt servicing.
The advisor said that the government earmarked Rs 2.9 trillion in current fiscal year for debt servicing and loans taken by the previous governments can not be put in the account of present government.
The advisor said that tax collection in July was recorded at Rs 282 billion against the target of Rs 292 billion and there was some improvement in exports growth. The advisor said the economic revival is not an easy job as revenue is on descending trend and despite some improvement there is still a lot to be done.
The advisor said that privatisation of Pakistan Telecommunication Company Limited (PTCL) was the best deal at that time. There is need to expedite the privatisation process and the government has added 10 new entities into the privatisation list.
About achieving the revenue collection target, he stated that human beings can make efforts and certainly the challenges on economic and fiscal front, including on FBR's revenue collection side, are not easy to be fixed.
Shaikh said that the present government believes in transparency and urged the investors to take benefit from opportunities offered by the country. He assured the investors on behalf of the Prime Minister that there would be no difficulties in doing business as the present government believes in transparency.
He said that China-Pakistan Economic Corridor (CPEC) and Belt and Road Initiative (BRI) would promote regional connectivity which is important for regional development and through the project, Western China would get the shortest route to Gwadar Seaport.
The establishment of Special Economic Zones (SEZ's) would also attract foreign direct investment in the county. He said the capital market is important for the financial needs of the private sector.