Finance Minister Muhammad Aurangzeb hinted at a potential interest rate cut by the State Bank of Pakistan’s Monetary Policy Committee (MPC) in June or July.
He shared insights into Pakistan’s economic outlook during a press conference held in Islamabad on Tuesday.
This consideration aligns with the observed decline in inflation, paving the way for monetary policy adjustments.
The finance minister also highlighted the positive outcomes of Saudi investors’ recent visit to Pakistan. Discussions with the Saudi delegation have opened avenues for economic cooperation and investment, signaling optimism in Pakistan’s economic trajectory.
Moreover, the finance minister emphasised the country’s progress towards economic stability, citing significant growth in foreign exchange reserves.
Despite the repayment of a $1 billion Eurobond last month, Pakistan’s reserves have more than doubled since January 2023, reaching around $8 billion by May 2024, he said, adding that this upward trend is expected to continue, with reserves projected to rise to approximately $9 billion following the final tranche from the International Monetary Fund (IMF).
Looking ahead, the finance minister outlined key priorities, including infrastructure development to strengthen the economic foundation and reforms to enhance revenue generation through a streamlined taxation system. Fiscal discipline remains a focal point, with calls for prudent spending to ensure optimal resource allocation for sustainable growth.
