Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, stated that Pakistan’s credit rating has improved and is expected to see further gains this year as the country is witnessing macroeconomic improvements due to government policies.
Speaking at the 8th Edition of the Future Summit, the finance minister highlighted the Monetary Policy Committee’s decision to cut the interest rate by 2.5%, noting that the country is on track to meet its financial targets for the first four months of the fiscal year. The Karachi Interbank Offer Rate (KIBOR) stands at 13%, and food inflation has significantly decreased.
The Express Tribune cited the finance minister as saying that “public sector employees hired from the next fiscal year onward will no longer be eligible for state-funded pensions upon retirement.”
The finance minister stressed the need to reform the pension system and highlighted the critical role of technology in governance to increase transparency, reduce corruption, and enhance service delivery.
“If reforms were easy, they would have been done years ago,” he said, urging the private sector to boost productivity and expand their businesses.
The minister emphasized that Pakistan’s fiscal deficit and current account have remained stable, with remittances contributing to stabilizing the domestic currency. Additionally, foreign exchange reserves have improved, and inflation has declined. The State Bank of Pakistan has also lowered its base interest rate, providing further economic support.
“These are the foundations on which we can rebuild our economy,” the Minister said, adding that Pakistan’s credit rating has improved and is expected to see further gains this year.
Aurangzeb underscored the importance of reducing the KIBOR in advance of the policy rate cut, making it more affordable for the private sector to access loans.
While acknowledging challenges, he reaffirmed the government’s commitment to making difficult decisions, particularly in tax and energy reforms and restructuring government institutions.
Senator Aurangzeb also conveyed that both the local business community and international investors have encouraged the government to maintain its path of economic reform for sustained growth.
In his welcome address at The Future Summit, Muhammad Azfar Ahsan, Former Federal Minister for Investment and Founder and Chairman of Nutshell Group, emphasized the valuable exchange of information at the event.
He noted that Pakistan is the fifth most populous country in the world and stressed the importance of focusing on current investors to enhance the country’s business environment further.
The 8th Edition of the Future Summit, the country’s largest corporate event, commenced on Wednesday in Pakistan’s financial capital. It is jointly organized by Unity Foods Limited and Nutshell Conferences Group in strategic partnership with Faysal Bank Limited and the Overseas Investors Chamber of Commerce and Industry (OICCI).
The Summit serves as a platform for industry experts, thought leaders, and innovators from across the globe to reshape economic dynamics and strategic landscapes.
