Islamabad, November 17, 2024 – Federal Finance Minister Mohammad Aurangzeb has expressed confidence in the country’s economic recovery, attributing recent improvements to the government’s proactive policies. Speaking at a press conference in Islamabad, Aurangzeb highlighted key indicators that signal economic stabilization, including an increase in foreign exchange reserves and a significant reduction in inflation, which has dropped from 38% to 7%. Additionally, policy rates have been lowered, and international confidence in Pakistan’s economy is growing.
Aurangzeb credited the leadership of Prime Minister for driving reforms that are yielding positive results across various sectors. “The IMF was surprised by how quickly Pakistan’s economy stabilized within just 14 months, with the turnaround from a deficit to a surplus,” he noted.
He also revealed that all four provincial Chief Ministers have pledged their support for ongoing economic reforms. The government is working to expand the tax net and will soon unveil a new economic roadmap.
Positive Outlook in IMF Talks
The Finance Minister further discussed the ongoing discussions with the International Monetary Fund (IMF), which took place from November 12 to 15 under Mission Chief Nathan Porter. These talks, he said, were transparent and productive, with no secret deals. Aurangzeb assured the public that the country is on track to meet its economic goals with the support of the IMF.
Minister of State Highlights Economic Progress
Ali Pervaiz Malik, Minister of State for Finance, echoed the Finance Minister’s comments in an interview with a private news channel, praising the government’s success in reducing the current account deficit to just $100 million in the first quarter of the year. He attributed this achievement to the government’s focus on increasing remittances and boosting exports. Malik also dismissed rumors about a mini-budget or higher fuel taxes, calling such discussions premature.
He emphasized that the government’s partnership with the IMF is bringing about stability and that inflation is on the decline, with prices of essential goods beginning to fall. “This is a sign of the government’s commitment to controlling inflation and maintaining price stability,” Malik stated.
Focus on Climate Change
Aurangzeb also underscored the importance of tackling climate change, recognizing it as a major challenge for Pakistan’s economy. He called for collective action to mitigate the negative impacts of climate change on the country’s growth and development.
Both Aurangzeb and Malik reaffirmed the government’s commitment to strengthening Pakistan’s economic foundation and expressed optimism about the ongoing negotiations with the IMF. They are confident that these talks will contribute to the country’s long-term financial stability.
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