Seeks to finalise US deal before April 9; Further decrease in interest rate possible: Says Rs870b worth of purchases made during Eid-ul-Fitr
Finance Minister Muhammad Aurangzeb has framed the ongoing US tariff issue as both a challenge and an opportunity, expressing hope that it can pave the way for deeper bilateral cooperation.
Speaking at a press conference here, he said Pakistan aims to present its position as part of a long-term, mutually beneficial engagement with the United States.
“We want to make sure that we, in terms of our representations, put forward how we see it in the medium to long term as a win-win situation for both Pakistan and the US,” Aurangzeb said during a press conference in Islamabad on Saturday.
Aurangzeb noted that while the situation presents immediate challenges, it also opens doors for negotiation and long-term engagement.
“You should never let a good crisis go to waste,” he remarked, underlining the government’s intention to formulate and present a well-structured package to the US administration.
The finance minister said the recommendations are expected to be finalised in the coming days and submitted to the prime minister for approval.
Following that, a high-level delegation will travel to Washington to convey Pakistan’s position and further dialogue with US officials.
He affirmed that Islamabad remains “very constructively engaged” and hopes to strengthen the relationship through strategic discussions before the upcoming April 9 deadline of the 29% tariff.
Aurangzeb stated that there has been a significant reduction in interest rates and, in his opinion, there is room for further reduction.
He said that economic stability had been achieved in the country, which is crucial for economic development.
He also noted significant improvements on the external front, with remittances expected to exceed 36 billion dollars this year.
The Finance Minister mentioned that exports are also increasing, and by the end of June, the country’s foreign exchange reserves will reach $13 billion.
He added that there are no difficulties in opening Letters of Credit or transferring profits by companies abroad.
On the domestic front, inflation has significantly decreased.
Muhammad Aurangzeb further said that the reduction in inflation should be passed on to the public, and the Economic Coordination Committee is taking measures to address inflation.
He also commented on the significant reduction in interest rates, stating that there is still room for further reduction.
The Finance Minister reported that Rs870 billion worth of purchases were made during Eidull Fitr, compared to Rs720 billion last year.
He highlighted a 14% increase in cement production and a 40% increase in car sales, along with a 30% rise in motorcycle sales during the first half of the year.
Regarding the International Monetary Fund, Muhammad Aurangzeb confirmed that a staff-level agreement had been reached, and Pakistan had achieved the IMF’s structural benchmarks.
