Islamabad-(Mudassar Iqbal)-Pakistan’s Finance Minister, Muhammad Aurangzeb, has announced significant progress in the country’s economy, citing the successful completion of the IMF Standby Agreement and a substantial 29% increase in exports, largely driven by the IT sector . This growth, combined with improvements in foreign exchange reserves and single-digit inflation, demonstrates the government’s effective policies and leadership.
In a press conference in Islamabad on Sunday, he stated that macroeconomic stability is not a destination but a journey, emphasizing the government’s ongoing efforts to strengthen the national economy.
Aurangzeb reported a 29% increase in exports, driven largely by growth in the IT sector. He attributed this success, along with improvements in foreign exchange reserves and a decrease in inflation to single digits, to the Prime Minister’s leadership and the successful implementation of government policies.
Economic Highlights:
– Export Growth: 29% increase in exports, driven by IT sector growth.
– Inflation Reduction: Single-digit inflation achieved through lower policy rate.
– Foreign Exchange Reserves: Improved reserves and timely repayment of $2 billion debt in June.
– Tax Collection: Number of tax filers doubled to 3.2 million, with 723,000 new filers added.
– Investor Confidence: Positive developments in Pakistan Stock Exchange and increased foreign direct investment.
He also praised the role of the caretaker government in securing the IMF program.
The Minister highlighted the timely repayment of a $2 billion debt in June and a reduction in the policy rate to 4.5%. He linked the decrease in inflation to the lower policy rate. He also noted positive developments in the Pakistan Stock Exchange and increased foreign direct investment. Aurangzeb emphasized that investor confidence is a major achievement reflecting the strengthening economy.
Addressing concerns about tax collection, Aurangzeb stated that the number of tax filers has doubled compared to last year, reaching 3.2 million from 1.6 million. He further announced that 723,000 new filers joined the tax net this year, adding that non-filers will be restricted from purchasing vehicles and property.
He also revealed plans to streamline the Federal Board of Revenue (FBR) and emphasized the need for reforms within the organization. To improve efficiency, six ministries will be abolished, two merged, and further reforms will be implemented in government institutions.
Aurangzeb concluded by expressing optimism about the future, stating his belief that the exchange rate and policy rate will remain in line with expectations. He stressed the importance of private sector leadership and the government’s intention to engage international experts to further improve the country’s economic standing.
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