Islamabad: Emphasizing a strategic pivot in economic policy, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, outlined the government’s commitment to transformative reforms aimed at achieving sustainable growth and reducing dependency on external borrowing. This declaration came during a meeting with senior officials from the Asian Development Bank (ADB) in Islamabad.
According to Press Information Department, the minister advocated for a significant shift in the country’s economic approach, moving away from traditional boom-and-bust cycles towards sustained export-led growth. This change, he noted, is essential for attracting foreign direct investment (FDI) into export-oriented sectors and regaining access to international capital markets.
The discussion, which included ADB executives such as Mr. Donald Bobiash and Mr. Shigeo Shimizu, focused on the progress of ongoing structural reforms in Pakistan. Senator Aurangzeb highlighted recent economic achievements, including effective management of the country’s twin deficits, buoyant remittances, healthy exports, and a substantial reduction in inflation rates from a high of 38% last year to a 44-month low of 6.9% in September.
Further economic indicators discussed included the reduction in the policy rate by 450 basis points with potential for more cuts, stability in the exchange rate, and growth in foreign exchange reserves to $10.7 billion following an IMF agreement. These factors, Aurangzeb noted, have contributed to increasing business confidence, as evidenced by the stock exchange index surpassing the 85,000 mark.
The meeting also touched on the recent National Fiscal Pact, which Aurangzeb described as a milestone in promoting structural reforms and encouraging provincial governments to enhance tax collection, rationalize expenditures, and improve governance.
ADB representatives expressed support for Pakistan’s reform measures and reaffirmed their commitment to assisting the country in its development goals, emphasizing the importance of innovative and inclusive growth strategies.