Country’s economic managers have noted rising international commodity prices, higher import bill and current account deficit which are main risks to the macroeconomic outlook.
A meeting of the Monetary and Fiscal Policy Coordination Board (MFPCB) was held on Wednesday under the Chairmanship of Shaukat Tarin, the Federal Minister for Finance.
Governor, State Bank of Pakistan, Reza Baqir, Abdul Razak Dawood, the Advisor to the Prime Minister on Commerce and Investment, Dr. Jahazaib Khan, the Deputy Chairman of Planning Commission, and Private member, Dr. Asad Zaman also attended the session.
The Finance Minister briefed the meeting that all key economic indicators of the economy, fiscal sector, monetary and external sectors were moving on strong footings and the government was taking all policy measures in proactive manners to achieve the social-economic targets of the fiscal year 2021-22. He discussed about the possible risks to the economy and strategies to counter these threats.
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The meeting noted the rising trend of the prices of international commodities, increasing import bills, and current Account Deficit (CAD) which are main risks to the macroeconomic outlook. It was decided to have close coordination and vigilance for policy adjustments to support economic development.
Shaukat Tarin was instructed to design and execute policies to achieve economic targets and overcome the likely threats. He presented before the session the current economic situation of the country and told about the incentives that were provided in the budget which are causing the improvement of confidence in the business community and the economy of the country is strengthening.
The session appreciated the efforts. The Finance Secretary briefed the meeting about the budgetary allocation of different activities and manners to maintain the fiscal discipline and the measure which are being taken to contain non-development expenditure, keeping in view the maximum utilization of resources to improve the living condition of the common man.
Moreover, Governor SBP explained the monetary policy stance, already announced earlier. He highlighted the increase in commodities prices in the global market which have implications for higher import bills and inflation.