Islamabad: In a virtual meeting with representatives from Fitch Ratings, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb provided a comprehensive update on Pakistan’s economic situation. The discussion highlighted recent successes and ongoing reforms aimed at strengthening the country’s financial stability and growth prospects.
According to Press Information Department, the meeting featured Fitch Ratings’ Senior Director Mr. Thomas Rookmaker, and Directors Asia Pacific Sovereign Mr. Krisjanis Krustins and Mr. Jeremy Zook, along with senior Ministry officials. Minister Aurangzeb outlined key achievements, including the completion of Pakistan’s 9-month Stand By Arrangement with the IMF, which he noted had positively influenced macroeconomic indicators.
He detailed significant developments such as the rise in Pakistan’s foreign exchange reserves to USD 9.4 billion, a robust stock exchange performance, and a 7.7% increase in foreign remittances. The Minister also underscored substantial fiscal reforms, including a 30% rise in tax collection in FY 2024 compared to the previous fiscal year and the addition of over 150,000 new tax registrants among retailers.
The discussions further delved into ongoing reforms in the energy sector and the rightsizing of State-Owned Enterprises to enhance efficiency and governance. Minister Aurangzeb briefed the Fitch representatives on the confidence expressed by multilateral institutions in financing Pakistan’s projects and shared details of the Staff-Level Agreement finalized in July 2024 with the IMF.
This new medium-term program is designed to support Pakistan’s domestic economic reform agenda, aiming to increase revenues by 1.5% of GDP in FY 2025 and achieve a primary surplus of 1% of GDP. The representatives from Fitch Ratings acknowledged the ambitious targets and fiscal measures adopted by the Government of Pakistan and recognized the improvement in economic indicators.