The Minister also noted a stabilising exchange rate and an increase in foreign exchange reserves to $10.7 billion, following the signing of an agreement with the International Monetary Fund
By Asghar Ali Mubarak
ISLAMABAD: In a bid to reinforce economic stability and sustainable growth, Pakistan’s Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, reiterated the government’s dedication to implementing its reform agenda during a recent meeting with a high-level delegation from the Asian Development Bank (ADB). The meeting underscored the urgent need to shift the economy away from its cyclical boom-and-bust nature towards a more reliable, export-led growth model, which he argued is essential for attracting foreign investment and reintegrating into the international capital market.
Aurangzeb’s comments came as he presented a comprehensive overview of the country’s ongoing structural reforms. He highlighted positive trends in key economic indicators, noting a substantial decrease in inflation—from a peak of 38 percent last year to a significant low of 6.9 percent in September. He also pointed to the effective management of twin deficits, buoyed by strong remittances and healthy export performance, as well as a recent policy rate cut of 450 basis points, with expectations of further reductions in the near future.
The Minister also noted a stabilising exchange rate and an increase in foreign exchange reserves to $10.7 billion, following the signing of an agreement with the International Monetary Fund. The stock exchange index has recently crossed the 85,000 mark, signalling a growing confidence among investors and a favourable climate for institutional investment. Aurangzeb credited Prime Minister Shehbaz Sharif for his hands-on approach to steering the implementation of wide-ranging reforms in crucial sectors such as taxation, energy, and public sector governance.
Finance Minister described the recent signing of a National Fiscal Pact between the federal government and the provinces as a significant milestone, aimed at harmonising structural reforms and encouraging provinces to enhance their tax revenue and improve governance. Expressing gratitude for the ADB’s ongoing support, Aurangzeb conveyed Pakistan’s desire to deepen its partnership with the bank, seeking enhanced assistance for its reform initiatives.
The ADB officials, including Executive Directors Donald Bobiash and Shigeo Shimizu, commended Pakistan for its ambitious reforms aimed at stabilising the economy and fostering sustainable growth. They reaffirmed the ADB’s commitment to supporting Pakistan’s development objectives and initiatives focused on inclusive growth, innovation, and climate action. As Pakistan navigates its economic challenges, the government’s renewed commitment to structural reform and collaboration with international partners marks a pivotal moment in its pursuit of lasting economic stability.
