Forex reserves to reach $10bn by June, claims finance minister.
In a keynote address at the 2024 Islamabad Business Summit, Finance Minister Muhammad Aurangzeb delivered an optimistic forecast for Pakistan’s economic prospects, citing an anticipated rise in foreign exchange reserves and ongoing efforts to address economic challenges.
Foreign Exchange Reserves Set to Reach $10 Billion:
Minister Aurangzeb expressed confidence that Pakistan’s foreign exchange reserves will reach $10 billion by June this year.
He highlighted a notable increase in reserves, signaling positive momentum in the country’s economic stability.
Emphasis on Energy Sector Reforms:
Aurangzeb said that there is an urgent need for reforms in the energy sector, particularly advocating for the privatization of loss-making enterprises.
This initiative is viewed as essential for improving efficiency and reducing fiscal burdens.
IMF Bailout considered as Last option:
Regarding financial support, the Finance Minister acknowledged that approaching the International Monetary Fund (IMF) is often seen as a “last option” for countries facing economic challenges.
Pakistan has formally requested a new IMF bailout package, aiming for a program between $6 to $8 billion under the Extended Fund Facility (EFF).
Optimism Despite IMF Concerns:
Despite concerns raised by the IMF about Pakistan’s external buffers, particularly due to ongoing debt service obligations, Aurangzeb remained optimistic about the country’s economic trajectory.
Also read: IMF signals to ‘engage’ with Pakistan on fresh bailout
He forecasted a GDP growth rate of 2.6% for fiscal year 2024.
Progress in Economic Indicators:
The Finance Minister highlighted significant progress in various economic indicators.
He mentioned a reduction in the current account deficit (CAD) to $1 billion after a 74% reduction in fiscal year 2024.
Additionally, the trade deficit was slashed to $17 billion following a 24.9% reduction.
Government Initiatives Boost Revenue Generation:
Aurangzeb applauded government initiatives aimed at boosting revenue generation, noting a substantial 30.2% increase in tax collection by the Federal Bureau of Revenue (FBR) during the current fiscal year, surpassing the Rs6.707 trillion target.
Positive Developments in Agriculture Sector:
As Forex reserves to reach $10bn by June, the Finance Minister also acknowledged positive developments in the agriculture sector, which recorded a growth rate of 5%.
