Message from Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization

It gives me great pleasure and encouragement to note that Pakistan is rapidly evolving as a regional economic power owing to the significant milestones achieved on the economic front. Looking back, I can quote a number of achievements which have set the tone for Pakistan's future. For this, I congratulate the entire nation while renewing my resolve to continue to work for the country's success.
The present government in Pakistan is firm in its commitment towards creation of a strong, vibrant and competitive economy. This year's fiscal budget announced by the government also underscores important areas for future growth targets for the country. The budget sets an ambitious growth target at 5.7% in the next fiscal year and proposes major reforms and rebates for development of agricultural sector. Meanwhile, financial sector development is at the forefront of our economic reform agenda. The government fully realises that a robust capital market can prove as a basic building block for a strong economy. In collaboration with the Securities and Exchange Commission of Pakistan and the State Bank of Pakistan, we are striving to improve the outlook of our markets.
The economic and financial sector landscape in Pakistan is evolving and I am hopeful that given the continued reform process, this market would be able to utilise its immense potential to a greater extent. The economic indicators have improved and the performance of our economy is reflected in the upgradation of Pakistan's credit rating and dollar bonds rating by world's renowned rating agencies such as the Standard and Poor's and Moody's. The ratings have been upgraded based on our improving macroeconomic indicators and positive expectations of Pakistan's improved economic growth prospects, fiscal and external performance, and supportive relationship of external donors.
A very positive development this year has been the recent upgradation of Pakistan from Frontier to Emerging Markets by Morgan Stanley Capital International which is a leading benchmark provider and investment expert. The major underlying factors which helped Pakistan achieve this status have been the political stability and smooth transition of democratic governments that the country has witnessed, the government's investment-friendly economic policies, strength and vibrancy of the financial and capital market institutions, the market regulators' resolve and investor-centric policies, and the improving outlook of our financial sector landscape.
This reclassification is truly the beginning of a new chapter in our history and is expected to project Pakistan as a rising economic power in the region and an investment destination of choice world-wide. Global fund managers and investors will now have renewed confidence in our market, while this will also serve as an impetus for the local investors for greater participation. It goes without saying that this development can potentially boost our economy a great deal.Foreign investment in many sectors especially in cement, steel and automotive sectors, will also play an important role in strengthening the country's economy. On the trade front, China-Pakistan Economic Corridor (CPEC) is going to play a significant role in the development of our economy and the capital market can be a real beneficiary from this project. This mega project will witness the highest per capita investment to be made in Pakistan's history.
The overall encouraging financial sector situation has provided impetus to many important structural, developmental and regulatory changes for the financial and capital markets. It pleases me to see that resultantly, Pakistan has made progress in many areas. The capital market has seen groundbreaking reforms such as the integration of the stock exchanges, and promulgation of key laws such as the Securities Act and the Futures Market Act. Despite the above performance of the capital market, its full potential to support the country's economic development and growth is yet to be harnessed. Capital markets can play a crucial role in fund raising for infrastructure development projects as well as value creation for businesses through quality listings. If investment-driven sustainable economic growth is to be achieved, capital market is a key component of any serious development planning and its associated funding. This is especially important in the backdrop of CPEC which is our biggest infrastructure development programme, as I mentioned earlier. I am hopeful that Pakistan's capital market will display its capacity and capability to channel both domestic and international savings and funding into making this initiative a real success in the coming years.
Lastly, I would highlight that in its efforts to build the financial sector and implementation of the economic development agenda, the government requires cooperation from other stakeholders a. I urge them all to come forward and contribute positively to the country's future. Together, we can achieve even greater goals and successes. This is especially important in today's competitive world where things are fast changing and a proactive approach is needed to meet challenges of rapidly evolving economic and financial landscapes.
Hoping for a stable and prosperous future for Pakistan- Insha'Allah!