KARACHI: Finance Minister Muhammad Aurangzeb said on Saturday that workers’ remittances are expected to reach a record $35 billion in the fiscal year 2024-25, up from $30.25 billion in FY24.
Speaking to the media at the Overseas Investors Chamber of Commerce and Industry (OICCI), the finance minister highlighted that state-owned entities (SOEs) are incurring daily losses of Rs2.2 billion. “We have sustained losses to the tune of Rs6 trillion in the last 10 years, which comes to around 50% of the revenue collection target set at Rs12.9 trillion for FY25,” he stated.
Aurangzeb said the government plans to control these losses through privatization, adding, “Privatization, liberalization, and deregulation are the way forward.”
He shared that foreign companies operating in Pakistan have repatriated $2.2 billion in May and June 2024, clearing the entire backlog. “Now there is no restriction on sending the repatriation from the Ministry of Finance and State Bank of Pakistan (SBP). This is now up to commercial banks to facilitate the foreign companies in continuing to send profit and dividends without any delay,” he explained.
Answering a question about the rupee-dollar exchange rate, Aurangzeb said, “The rupee-dollar parity depends on the demand and supply of the greenback in the market, while market forces are determining the exchange rate instead of the government.”
He said the government is focusing on attracting Foreign Direct Investment (FDI) in export-led projects to boost exports for sustainable economic growth. “Whenever our economy hit 4% growth rate, the issues of widening current account deficit (CAD) and balance of payment arise, as we are running an import-led economy,” he said.
The finance minister did not answer a question about when Pakistan’s economic growth rate would surpass 4%.
