“Pakistan’s economy is on the rise,” FinMin discusses IMF’s package

ISLAMABAD: “Pakistan’s economy is on a steady path to recovery,” Federal Finance Minister Muhammad Aurangzeb said in a press briefing on Sunday.

He shared a series of positive economic indicators that signal significant progress under the leadership of Prime Minister Shehbaz Sharif.

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Finance Minister Aurangzeb announced that Pakistan’s foreign exchange reserves have soared to their highest levels in recent years, attributing the boost to prudent financial policies and strong external support. “The IMF programme has been successfully completed, and it played a vital role in stabilising the economy,” he added.

The finance minister also talked about inflation finally falling into single digits and providing a much needed relief after months of rising prices. He explained that this drop in inflation has also allowed the State Bank of Pakistan’s (SBP) policy rate to decline, allowing for a more favourable environment for both consumers and businesses. He credited government policies for achieving this milestone.

He informed that Pakistan has seen a 29 per cent increase in domestic exports, with particularly strong growth in the IT sector. Highlighting this as a “promising development,” he said that it will likely further boost Pakistan’s balance of trade. The Pakistan Stock Exchange (PSX) is also showing signs of better performance, with rising investor confidence.

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The finance minister added that the foreign direct investment (FDI) has also increased, reflecting growing trust from international investors in Pakistan’s economic prospects. He reiterated that while macroeconomic stability is a journey, not a destination, the country is moving in the right direction.

“We are seeing the positive results of our policies and reforms,” said Aurangzeb. He also reiterated the new restrictions applicable on non-filers by the Federal Board of Revenue (FBR), adding that the number of filers in the country have doubled from 1.6 million to 3.2 million in the current fiscal year.