Economic measures start yielding results: finance minister

ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has announced that the benefits of the International Monetary Fund (IMF) programme approval have started to show, with significant improvements in the economy.

The value of the rupee has stabilised, and inflation has decreased reaching its lowest level in 44 months, the finance minister said. Inflation has dropped to 6.9 per cent, with further reductions expected in the coming years. “The State Bank of Pakistan (SBP) predicts inflation will decline to 6 per cent by 2025,” he said.

Additionally, the country’s interest rates have also begun to decrease and are anticipated to fall further in the near future.

“Whenever businesses are forced to close due to law and order situations, the economy suffers serious consequences”

Muhammad Aurangzeb

However, the finance minister also warned of the negative impact protests and strikes can have on the economy. “Whenever businesses are forced to close due to law and order situations, the economy suffers serious consequences,” he stressed.

He added that the government has estimated the losses caused by recent protests, noting that such disruptions prevent access to essential services like hospitals and schools.

The minister expressed optimism about the economic future, pointing to the IMF programme’s early successes and forecasting a further reduction in inflation and interest rates in the coming days.