Islamabad: Finance Minister Muhammad Aurangzeb expressed optimism regarding Pakistan’s economic trajectory, citing improvements in key economic indicators and the anticipation of successful negotiations with the International Monetary Fund (IMF). In a televised address, Aurangzeb highlighted recent upgrades by international agencies and a robust level of foreign exchange reserves as evidence of economic progress.
According to Ministry of Information and Broadcasting, Aurangzeb announced that international recognition, such as the upgrading of Pakistan’s ranking by two global agencies, is a testament to the government’s effective economic policies initiated six months ago. He emphasized that these efforts are beginning to bear fruit, with foreign exchange reserves now exceeding nine billion dollars, providing more than two months of import cover.
The minister also noted a significant reduction in inflation, which has dropped to a single-digit figure. This decrease in inflation coincides with a lowering of the policy rate, which Aurangzeb said would extend benefits across various sectors of the economy. He also reported that remittances in July reached an all-time high, further bolstering the country’s financial stability.
In his remarks, Aurangzeb reiterated the government’s goal to increase the tax to GDP ratio to over thirteen percent, calling for enhanced contributions from all sectors, including wholesalers, distributors, and retailers. He mentioned that the impact of ongoing enforcement and digitalization initiatives would become evident within the current month and highlighted that 132 billion rupees have already been refunded to exporters.
Additionally, Aurangzeb disclosed plans to reduce the size of the federal government, mentioning that a systematic approach was being employed and that input from various departments was being considered to streamline operations.
Expressing confidence in the IMF’s support, Aurangzeb anticipated the timely approval of Pakistan’s loan program, asserting that it would be successful and serve as the last program of its kind needed by the country.