Lahore (Commerce Desk) Former Federal Minister for Commerce Gohar Ejaz has said that the government has worked hard in preparing the budget, and both Prime Minister Shehbaz Sharif and the Finance Minister have made efforts to stimulate the economy.
He said that government measures for the real estate sector are positive and could help increase economic activity.
Gohar Ejaz added that Pakistan has strengthened its recognition on the diplomatic front globally, but real economic prosperity depends on increasing exports.
He said that achieving the 4 percent economic growth target will require extraordinary effort, and the government does not appear fully confident about meeting this target at present.
The former minister described the policy interest rate as a major issue for the economy, saying that many countries did not increase interest rates even during wartime, while Pakistan needs to reduce it to around 5 percent.
He said the country is facing heavy payments on interest and that this remains a major economic burden. He also questioned how inflation can be effectively controlled with high interest rates.
Gohar Ejaz further said that a large portion of government tax revenue goes towards interest payments, so economic policies need to be reviewed and made more effective.
He stressed that for sustainable economic stability and growth, increasing exports, promoting investment, and improving the business environment are essential.