KARACHI: According to Finance Minister Mohammad Aurangzeb on Wednesday, the nation’s most recent macroeconomic data show the encouraging trends that are transforming its economic underpinnings to meet international standards for higher ratings.
Speaking at the seventh “The Future Summit,” which was co-hosted by Unity Foods and Nutshell Conferences Group, he claimed that a thriving economy was indicated by a stable rupee, increased foreign exchange reserves, falling inflation, and a drop in interest rates.
He went on to say, “Pakistan’s credit rating has improved and is expected to continue improving this year.”
According to the minister, the economy is changing due to macroeconomic stability and improvements in the twin deficits (current account and fiscal).
According to him, the nation’s food inflation rate is also declining. He added that the Economic Coordination Committee examined the pricing of pulses and poultry and that difficult decisions are taken for any problems or challenges.
The minister is optimistic that the credit rating will continue to rise.
Pulses and poultry have seen price increases of 60% and 15%, respectively, despite worldwide price declines and lower fuel and transportation expenses.
He claimed that the government’s economic initiatives have been receiving favorable reaction.
“The government must address problems with energy, taxation, money, and pensions. Pakistan has had a troubled past and has occasionally veered off course.
He asserted that while reforms were never glamorous, they were necessary for effective governance. He said that better customer service is another benefit of less human involvement.
The finance minister claimed that things would have been completed years ago if reforms were simple.
According to Mr. Aurangzeb, in order to draw in investment, projects must be developed that are both bankable and viable. Exports should ideally be increased by foreign direct investment (FDI); if not, currency issues will occur. The government should strive to join the global capital market and take action to steer FDI toward the export industry.
The minister said that the Karachi Interbank Offered Rate (Kibor), the primary benchmark for the private sector, had already decreased prior to the policy rate being cut. He noted that banks can now lend to the private sector at reduced rates.
Make a private sector appeal
According to the minister, the private sector must expand its operations and boost output.
He emphasized that the private sector must lead research independently of the government. He questioned the role of government research institutes, stating that agriculture would have fared far better if they had been successful.
“The private sector will receive research support from the government,” he stated, adding that he thinks things get better when the government takes a backseat. He noted that there were no scandals in the rice and maize industries once the government stopped regulating them.
According to him, 40% of children under five suffer from malnutrition, making the nation’s rapid population expansion a worry.
OICCI has created a policy to strengthen its position in Pakistan’s economy, according to Yousuf Hussain, President of the Overseas Chamber of Commerce and Industry, who spoke at the summit alongside other speakers.
