Pakistan’s Finance Minister Calls for Leveraging Economic Gains for Stability

Wed Oct 02 2024
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ISLAMABAD: Pakistan’s Finance Minister Mohammed Aurangzeb on Wednesday said that he is confident that the reduction in inflation will take the country from stabilization to a growth path.

Addressing the launching ceremony of ‘Pakistan Economy Dashboard’, he emphasized the importance of “leveraging” Pakistan’s improving economic position to achieve lasting macroeconomic stability.

“[On the economic front] we are in a good place,” Aurangzeb stated, adding, “However, it is crucial that we capitalize on this position to ensure permanent macroeconomic stability.”

He noted that the latest Consumer Price Index (CPI) inflation figures have “surpassed all expectations.” With headline inflation at 6.9% year-on-year in September 2024, a decrease from 9.6% in August, Aurangzeb believes this trend will support economic stabilization and pave the way for growth.

According to the Pakistan Bureau of Statistics (PBS), this CPI figure is the lowest since January 2021. Aurangzeb also highlighted the government’s recent decision to reject all borrowing bids, calling it “a symbolic and important move” that signals the government is not desperate to borrow. “When we do borrow, it will be on our terms. For the banking sector, the message is clear: they need to start lending to the private sector.”

He stressed the need for continued structural reforms to leverage macroeconomic stability, stating, “This is a defining moment for the country, and we must pursue these reforms with full rigor and vigor.” Aurangzeb asserted that the current International Monetary Fund (IMF) program will be the last if structural reforms are effectively executed.

The Pakistani authorities and the IMF reached a staff-level agreement on the Extended Fund Facility (EFF) worth approximately USD 7 billion (equivalent to SDR 5,320 million) on July 12.

Aurangzeb said that the establishment of the Pakistan Economy Dashboard will enhance transparency in the economic landscape.

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