The Pakistan Business Forum (PBF) lauded the government for its commendable initiatives aimed at stabilizing the economy.
In a statement released on Sunday, PBF South Punjab President Khawaja Mahboob-ur-Rehman and Chairman Malik Talat Sohail highlighted the collaborative efforts between the government and the Special Investment Facilitation Council (SIFC) that have led to significant improvement across various economic indicators.
The PBF leaders emphasized the remarkable decline in the inflation rate, which has plummeted from a staggering 38% to an impressive 6.9%. In tandem, the policy rate has been reduced from 22% to 17.5%, contributing to an improved economic climate. The exchange rate has also seen a favorable change, with the value of the dollar decreasing from Rs 310 to Rs 277.
In a noteworthy development, the State Bank of Pakistan’s foreign exchange reserves have surged from $4.4 billion to a robust $11 billion, marking the highest level in over two and a half years. The stock market has experienced a remarkable rebound, soaring from 38,000 points to an impressive 83,000 points, reflecting renewed investor confidence. Additionally, the trade deficit has contracted from $27.49 billion to $24.09 billion, while IT exports have risen from $2.6 billion to $3.3 billion, contributing to an overall increase in exports by $1.5 billion.
The PBF also pointed to significant financial relief, estimating that the termination of five Independent Power Producer (IPP) contracts by 2029 could save the government $60 billion. Ongoing negotiations with eight additional companies are expected to further alleviate capacity charges, reinforcing the commitment to economic efficiency.
Highlighting Pakistan’s successful hosting of the Shanghai Conference, the PBF noted that this achievement has positively enhanced the country’s global image.
The federal government’s recently announced five-year privatization plan, involving the privatization of 24 institutions in three phases, received support from PBF leaders.
However, they urged the government to expedite the process, completing it transparently within three years to alleviate the financial burden posed by underperforming entities.
In the agricultural sector, Mr. Talat Sohail raised concerns about a significant production shortfall of cotton, with a reported 2.9 million bales deficit valued at $3 billion, or 48.26% of expected output.
He advocated for the establishment of a dedicated cotton task force to enhance production capabilities, leveraging modern agricultural practices to meet global demand and bolster rural employment.—APP
