KARACHI: Finance Minister Muhammad Aurangzeb says Pakistan is moving on path of economic stability due to government’s prudent policies.
Addressing 8th edition of Future Summit in Karachi on Wednesday, the Finance Minister said decrease in current account deficit, increase in remittances, stabilization of rupee and decrease in policy rate clearly indicate that national economy is moving in right direction.
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.
Euro, Panda bonds: Issuance depends on improved credit ratings: Aurangzeb
The Finance 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.
The Finance Minister 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.
Aurangzeb has 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.
He noted that Pakistan is the fifth most populous country in the world and emphasized the importance of focusing on current investors to further enhance the country’s business environment.
On the occasion, Consul General of UAE, Dr. Bakheet Ateeq Al Rumaithi and others also spoke. The 8th Edition of the Future Summit, the largest corporate event which commenced on Wednesday in the financial capital of the country, is being jointly organized by the Unity Foods Limited and Nutshell Conferences Group in strategic partnership with Faysal Bank Limited and Overseas Investors Chamber of Commerce and Industry (OICCI).
The Summit is a platform where industry experts, thought leaders, and innovators from across the globe unite to reshape economic dynamics and strategic landscapes.