Finance Minister Ishaq Dar on Friday emphasised to have a more broad based inclusive growth and better coordination between the monetary and fiscal policies in view of rapidly changing global economic environment.
He made these remarks during a meeting of the Monetary and Fiscal Policies Coordination Board here.
He particularly emphasised on enhancing the exports and stressed importance of the Cabinet Sub-Committee on Production and Exports in identifying steps and measures which would enhance exports.
He said that government is cognizant of the declining trend in exports and will take all possible measures to reverse the trend.
The Secretary Finance briefed the minister that macroeconomic indicators continued to show positive growth.
Fiscal year 2014-15 registered at 4.24% growth which is the highest growth in the last seven years.
This is the second year that GDP growth remained above 4%.
A number of measures have been taken in the budget for export promotion.
During July 2015-16 current account deficit has narrowed to $159 million as compared to $820 million last year.
The remittances during outgoing fiscal year 2014-15 witnessed remarkable growth of above 16% as compared to last year and reached $18.4 billion.
The foreign direct investment remained subdued but has started improving as in July of the current fiscal year 2015-16.
This will be further supplemented through CPEC investment.
The inflation has been contained in 2014-15 at 4.53% against 8.62% of last year.
During July of 2015-16 the headline inflation increased by 1.8% as compared to 7.9% of last year.
The foreign exchange reserved continued its upward trend and reached above $18 billion.
The SBP briefed the meeting about the money supply, net domestic and foreign assets as well as the decisions in July to keep the SBP target (Policy) rate unchanged at 6.5 percent.
This decision was preceded by a reduction of 100 bps in ceiling rate to 7.0 percent in May, 2015.
The finance minister expressed the hope that improvement in electricity and gas supply as well as lower policy rate will bring further improvement in productivity and growth.
Going forward, we should put all our efforts to gear up the exports and address the issues hampering its growth, he said.
Meanwhile, the second meeting of the Cabinet Sub-Committee on Production and Export was held here Friday.
Finance Minister, Senator Mohammad Ishaq Dar chaired the meeting.
The finance minister at the outset of the meeting underscored the need for identifying and undertaking urgent measures to boost production and exports.
The relevant ministries were directed to immediately finalize their short term targets with corresponding action plans for presentation to the Committee in its next meeting.
In continuation of the proceedings of the previous meeting Ministry of Commerce presented the final version of the Strategic Trade Policy Framework (STFP) 2015-18.
The Committee was briefed that short-term measures will have product and market focus to attain results in short term.
The meeting was informed that the plan of action has been put into a state of readiness and as soon as the Policy is approved, its implementation will be carried out immediately.
The finance minister while endorsing in principle, proposals included in STPF 2015-18, directed Ministry of Commerce to solicit final approval from the Prime Minister.
The meeting also took stock of the critical issues confronting the agriculture sector including production constraints, commodity pricing, regulatory framework and input costs.
The Committee directed Ministry of National Food Security and Research to come up with proposals in consultation with provincial governments and relevant federal ministries and present to the Committee in the next meeting.
The State Bank of Pakistan (SBP) gave a briefing to the Committee on export-led growth models focusing on Malaysia, South Korea, Turkey and Singapore.
It was noted that value addition, diversification, technology and Research and Development (R and D), ease of doing business were key elements to boost exports.
It was also highlighted by the SBP that key constraints on this score currently being faced by Pakistan related to lack of R and D and technology initiatives, concentration in traditional products, limited resource availability, fragmentation and inadequate investment in the infrastructure etc.
The finance minister while appreciating the SBPs presentation desired that the Committee on Ease of Doing Business in Pakistan may hold its meeting immediately and present recommendations at the earliest.