Govt to regulate imports for three months even if it means slower growth, says Miftah

Finance Minister Miftah Ismail has said that the government would regulate imports for the coming three months even if it meant slower growth.

On Friday, while addressing a ceremony at the Pakistan Stock Exchange (PSX), Miftah said that he would not allow imports to increase for three months and would come up with a policy.

“I understand that growth will be reduced for a bit but I have no other choice,” the finance minister stated.

Miftah, while speaking of the exchange rate, pointed out that the rupee had fallen significantly against the dollar over the previous month because dollar outflows had been outpacing inflows.

“Even a small shopkeeper knows that if your sale is Rs 30,000 a day and you buy stock worth Rs80,000, then you need to reduce the stock you buy,” he said.

The finance minister said they employed a similar strategy and reduced imports to $4.9 billion from $7bn, following which “all problems ended”.

The finance minister said he supported the idea of export growth rather than import substitution, adding that the government needed to reduce the budget deficit and immediate action was required.

He further said that while Bangladesh, Vietnam, and Pakistan all had comparable economic situations in the 1990s, their exports had grown to $100 billion while Pakistan had to ask for money.

“It’s no fun. I think it’s time that we act like a mature, dignified nation. The new tax-to-GDP ratio is 9.2 percent. You cannot run a country on this. You need more money,” he said.