Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, stated that Pakistan is experiencing macroeconomic improvements due to the government’s policies.
While addressing the 8th Edition of the Future Summit at a local hotel on Wednesday, he highlighted the Monetary Policy Committee’s decision to reduce the interest rate by 2.5%, noting that the country is on track to meet its financial targets for the first four months of the fiscal year. The Karachi Interbank Offer Rate (KIBOR) stands at 13%, with food inflation decreasing significantly.
The Minister emphasized that Pakistan’s fiscal deficit and current account have remained stable, while remittances have contributed to stabilizing the domestic currency. Additionally, foreign exchange reserves have improved, and inflation has declined. The State Bank of Pakistan has also cut its base interest rate, providing further support.
“These are the foundations on which we can rebuild our economy,” the Minister said, noting that Pakistan’s credit rating has improved and is expected to see further gains this year.
Muhammad Aurangzeb underscored the importance of reducing the KIBOR ahead of the policy rate cut, making it more affordable for the private sector to access loans. He acknowledged challenges but reaffirmed the government’s commitment to making difficult decisions, particularly regarding tax and energy reforms, and restructuring government institutions.
The Federal Minister for Finance and Revenue stressed the need to reform the pension system and highlighted the critical role of technology in governance to increase transparency, reduce corruption, and enhance service delivery. “If reforms were easy, they would have been done years ago,” he said, urging the private sector to boost productivity and continue expanding their businesses.
Senator Muhammad Aurangzeb also conveyed that both the local business community and international investors have encouraged the government to stay on its current path of economic reform for sustained growth.
In his welcome address at The Future Summit, Muhammad Azfar Ahsan, Former Federal Minister for Investment and Founder and Chairman of Nutshell Group, highlighted the exchange of valuable information at the event. —APP
