ISLAMABAD: Minister for Finance and Revenue, Muhammad Aurangzeb, highlighted significant reforms in Pakistan’s energy sector and state-owned enterprises (SOEs) during a meeting with a delegation from Standard & Poor’s (S&P) Global Ratings at the Finance Division.
Aurangzeb underscored the confidence shown by multilateral institutions through financing support for various projects in Pakistan. He provided updates on Pakistan’s economic status, noting the successful conclusion of a nine-month standby arrangement with the IMF and positive trends in macroeconomic indicators.
Key achievements mentioned included bolstering foreign exchange reserves to $9.4 billion, robust performance of the stock exchange, and a decreasing trend in inflation with CPI-based inflation dropping to 12.6% in June. Additionally, he highlighted a 7.7% year-on-year increase in remittances from overseas workers.
The minister emphasized the government’s efforts to expand the tax base, which resulted in a 30% rise in tax collection for the fiscal year 2023-24, aiming to further improve the tax-to-GDP ratio.
Currently in talks with the IMF for a new medium-term programme, Pakistan seeks support for its ongoing economic reform agenda. The Finance Secretary, also present, reaffirmed the government’s stable outlook and outlined economic reforms reflected in the FY25 budget.
The S&P delegation commended Pakistan’s fiscal measures and acknowledged improvements in economic indicators, reflecting optimism about Pakistan’s economic trajectory amidst ongoing reforms.
