Federal Finance Minister Senator Muhammad Aurangzeb announced on Thursday that Pakistan’s economy is on the right track and showing signs of improvement.
Speaking at the Pakistan-Saudi Arabia Business Forum, Aurangzeb emphasized that the government’s role is to facilitate the private sector, not to engage in business. He welcomed Saudi delegates to foster trade and investment through a Business-to-Business (B2B) model.
The minister highlighted significant progress in macroeconomic stability over the past 12-14 months. Pakistan has achieved a primary surplus, reduced its current account deficit to under $1 billion, stabilized its currency, and increased foreign exchange reserves to cover two months of imports.
Aurangzeb pointed out that these improvements have continued into the current fiscal year, with strong remittances, export growth, and a drop in inflation from 38% to 6.9%. The reduction in policy rates has also benefited businesses.
While Pakistan’s credit rating has improved, Aurangzeb noted that more work is needed to reach at least a B- rating. He mentioned that institutional investments are returning to the country in both debt and equity markets.
The Islamabad Stock Exchange has reached record highs, and the International Monetary Fund (IMF) board has approved an extended program for Pakistan. This program aims to ensure long-term macroeconomic stability and implement structural reforms.
Aurangzeb reaffirmed the government’s commitment to structural reforms, sustainable growth, and tax reform.