ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb said on Tuesday that the country’s economic indicators are moving in a positive direction.
In a televised statement on Tuesday, he said that recent upgrades in Pakistan’s international rankings by two agencies serve as recognition of these improvements.
Aurangzeb highlighted that the positive results of the economic reforms initiated about six months ago are becoming evident. He pointed out that the country’s foreign exchange reserves have exceeded nine billion dollars, providing more than two months’ worth of import cover.
The Finance Minister also mentioned a reduction in inflation, which has now fallen to single digits. He stated that the policy rate is similarly decreasing, which is expected to benefit various sectors of the economy.
In addition, Aurangzeb said that remittances in July reached an all-time high. He reiterated the importance of increasing the tax-to-GDP ratio to over thirteen percent and emphasized that all sectors, including wholesalers, distributors, and retailers, need to contribute more to the economy.
He expected that the results of ongoing enforcement and digitalization efforts would become visible this month, noting that 132 billion rupees in refunds have already been paid to exporters.
The Finance Minister also affirmed that the size of the federal government will be reduced, emphasizing a systematic approach and ongoing consultations with departments.
Aurangzeb expressed confidence that the IMF board will approve Pakistan’s loan program on schedule, which he believes will be successfully implemented and serve as a lasting program.
