In a recent press conference, Dr. Shamshad Akhtar, Caretaker Federal Minister for Finance, announced that Pakistan’s economy has stabilized due to effective measures taken by the interim government.
The caretaker administration’s efforts over the last six months have led to significant economic improvements, including a reduction in the exchange rate volatility and a narrowing gap between the open market and official rates, which has fostered economic stability.
Key achievements include a decrease in the trade deficit to $1.9 billion in January 2024 from $2.6 billion the previous year and a 27% increase in exports to $2.8 billion in January. Additionally, the successful negotiation with the International Monetary Fund (IMF) resulted in a $700 million tranche in January 2024, alongside $1.5-1.6 billion secured from other multilateral institutions.
The government has also managed to reduce the fiscal deficit to 1.3% of GDP and the current account deficit by 71.1% to $831 million in the first half of FY2024. The introduction of the Export-Import Bank (EXIM Bank) marks a strategic move to enhance export financing.
Dr. Shamshad emphasized the need for privatization to reallocate resources towards education, health, and development, advocating for high-quality corporate governance in State-Owned Enterprises and encouraging the use of the Pakistan Stock Exchange for raising liquidity. These efforts underscore the caretaker government’s role in setting a solid foundation for Pakistan’s future economic growth and stability.
Corredt heading should be: Economic stability achieved by Pakistan’s caretaker govt, says Finance Mistry