Finance minister reaffirms commitment to economic reforms

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has reiterated the government’s dedication to its reform agenda, aiming to achieve macroeconomic stability, inclusive growth, and reduce Pakistan’s dependence on external borrowing.

During a meeting with a high-level delegation from the Asian Development Bank (ADB), led by Executive Directors Mr. Donald Bobiash and Mr. Shigeo Shimizu, Aurangzeb emphasized the need to transform the economy’s structure.

He stressed moving away from the traditional boom-and-bust cycles towards sustained export-led growth, which would attract investment and foreign direct investment (FDI) into export-oriented sectors and restore access to international capital markets.

Aurangzeb highlighted the government’s progress in managing twin deficits, supported by strong remittances and healthy exports.

He noted a significant drop in inflation from 38% last year to a 44-month low of 6.9% in September, alongside a reduction in the policy rate by 450 basis points, with further cuts anticipated.

The minister also pointed out the stability in the exchange rate, an increase in foreign exchange reserves to $10.7 billion following the IMF agreement, and the stock exchange index surpassing 85,000, reflecting growing business confidence and a favorable investment climate.

The meeting, attended by senior ADB and Finance Division officials, underscored the government’s commitment to implementing structural reforms and achieving long-term economic stability.

The ADB delegation also met with Ahad Khan Cheema, Federal Minister for Economic Affairs to discuss the country’s development priorities and macroeconomic reforms. The delegation is on Pakistan’s visit from 6-12th October 2024 for consultations with the government and key stakeholders to better align ADB’s support with Government’s priorities.