Pakistan at good place on economic front, open for business, Says Finance Minister
ISLAMABAD: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb here on Thursday expressed optimism about Pakistan’s prospects, stating the country was at a good place on economic front and open to business.
Addressing the Pakistan Saudi Arabia Business Forum, Aurangzeb highlighted government policies aimed at strengthening the private sector to lead the country’s business and economy.
The minister emphasized that the government’s role was not to do business, but to facilitate the private sector. He welcomed Saudi Arabian delegates to promote trade and investment through a Business-to-Business (B2B) model.
Aurangzeb cited significant progress in macroeconomic stability over the past 12-14 months. Pakistan achieved a primary surplus, reduced its current account deficit to less than $1 billion, stabilized its currency, and increased foreign exchange reserves to cover two months of imports.
The minister noted that these gains have been consolidated in the current fiscal year, with strong remittances, export growth, and a reduction in inflation from 38% to 6.9%. The decrease in policy rate has also benefited businesses.
Pakistan’s credit rating has been upgraded however added more was to be done to get the rate at B- at least. He said, institutional flows were coming back to country on both the debt and equity sides.
The Islamabad Stock Exchange reached a record high, and the International Monetary Fund (IMF) board approved an extended program for the country. He said, the IMF programme has two implications including bringing permanence in macroeconomic stability and secondly to execute structural reforms. He reaffirmed the government’s commitment to structural reforms, promoting sustainable growth and tax reform.