Pakistan’s economy is heading in the right direction, with inflation plummeting to its lowest point in six decades and foreign exchange reserves expected to exceed $13 billion by June, said Finance Minister Muhammad Aurangzeb on Saturday.
Addressing a press conference in Islamabad, the Finance Minister highlighted that the country’s economic outlook remains positive, with inflation currently standing at 0.7%.
He expressed confidence that Pakistan is on the brink of achieving sustainable economic stability. “We are seeing the benefits of reduced inflation, but it is crucial that these benefits are passed on to the common man,” Aurangzeb said.
The government is also forecasting a 3% economic growth rate for the current fiscal year. The Finance Minister stressed that while inflation continues to decrease, the next challenge will be to ensure that economic growth becomes stable and self-sustaining.
“We are witnessing an increase in foreign exchange reserves, and we expect them to surpass $13 billion by June this year,” Aurangzeb added.
He emphasised that this surge in reserves marks a significant achievement in the country’s economic recovery.
Aurangzeb further shared that discussions with the International Monetary Fund (IMF) regarding climate financing had been fruitful. The government has also successfully doubled the number of tax filers, reflecting a positive shift in the country’s financial transparency.
"The final stage of the IMF program will coincide with the implementation of difficult decisions that will shape the future of Pakistan's economy," he stated.
In a bid to attract more investment, the finance minister revealed that the government is focused on creating a robust institutional system to monitor the prices of essential commodities.
He highlighted the importance of the banking sector in driving economic growth, noting that recent reductions in the central bank’s policy rate had already begun to positively impact the market.
The government’s efforts are not limited to controlling inflation; steps are also being taken to foster an environment conducive to investment, including efforts to encourage new investors in the stock market.
“The Economic Coordination Committee (ECC) is paying special attention to further reducing inflation,” Aurangzeb said.
He concluded by stating that while the country has achieved a level of economic stability, the government is committed to turning this into a more enduring and sustainable condition for the long term.
