ISLAMABAD: Federal Minister for Finance and Revenue, Muhammad Aurangzeb, said on Wednesday that Pakistan’s macroeconomic indicators are showing positive trends.
Addressing the “International Affordable, Green & Resilient Housing Conference,” organized by Pakistan Mortgage Refinance Company (PMRC), Aurangzeb discussed the government’s progress over the past 12 to 14 months.
“We have made good and significant progress, whether it is the reversal of the country’s bane, both fiscal and current account,” he said. “Month after month, we are showing surpluses and leading towards a sustainable point,” Aurangzeb added.
The minister reiterated Pakistan’s commitment to implementing the International Monetary Fund (IMF) programme.
Aurangzeb noted that the country’s foreign exchange reserves have improved from just two weeks of import cover to 2.5 months of import cover. “If we stay on this trajectory by the end of this fiscal year, we will be at 3 months of import cover, which will be a good place to be in terms of international benchmark,” he stated.
The minister shared that the inflation rate declined to 4.9% in November 2024, the lowest in 78 months.
On monetary policy, he mentioned that while interest rate decisions remain under the central bank’s purview, there have been positive developments in market rates. “The 6-month KIBOR has dropped below 13%. Large corporates are actually borrowing in single digits, so we are moving in the right direction,” he said.
In his address, Aurangzeb linked the housing sector to Pakistan’s key challenges, namely population and climate. He emphasized the government’s commitment to providing policy support to boost private enterprise, particularly in the housing sector.
“Housing is a critical element, so to fix it and get it right is going to be critical as we go forward,” he said, adding, “However, we are not going back to directed lending, it creates distortions and has its implications for the medium term.”
