Pakistan’s foreign exchange reserves projected to hit $11 billion by month-end

ISLAMABAD: Finance Minister Muhammad Aurangzeb announced on Sunday that Pakistan’s economy is on a positive trajectory, projecting that foreign exchange reserves will reach $11 billion within two weeks.

Speaking at an event hosted by the China Chamber of Commerce in Pakistan, he emphasized the achievement of macroeconomic stability and a consistent exchange rate over the past 12 to 14 months. The anticipated reserves will provide approximately two and a half months of import coverage, nearing the global standard of three months.

Aurangzeb addressed ongoing issues, reassuring that delays in dividend remittances to Chinese companies will not recur as the country moves into the second phase of the China-Pakistan Economic Corridor (CPEC).

This phase focuses on monetizing existing infrastructure to enhance Pakistan’s export capacity, with government support under Prime Minister Shehbaz Sharif’s leadership.

He highlighted China’s significant investment exceeding $20 billion in energy projects, which have substantially transformed Pakistan’s energy landscape.

Notably, CPEC initiatives have generated 9,000 megawatts of electricity and facilitated the development of critical infrastructure, such as the Matiari-Lahore high-voltage direct current transmission line.

The Minister acknowledged that Chinese investments in independent power producers (IPPs) represent the largest financial influx in Pakistan’s history, providing diverse opportunities for investors across various sectors, including hydropower, solar, and wind energy.

He reaffirmed the government’s commitment to honoring agreements with these investors while seeking to negotiate improved financing terms.

Addressing security concerns for Chinese enterprises, Aurangzeb stated that top government officials are dedicated to ensuring the safety of Chinese nationals in Pakistan.

In a related statement, Federal Minister for Information Attaullah Tarar expressed gratitude towards China for its critical role in alleviating Pakistan’s energy crisis, noting that CPEC has significantly contributed to the nation’s prosperity and stability since its inception.

He credited the partnership with China for facilitating essential energy projects that have reshaped Pakistan’s economic landscape, culminating in notable growth and reduced inflation from 2013 to 2018.