In a bid to ensure sustainable development, Finance Minister Muhammad Aurangzeb reaffirmed Pakistan’s commitment to export and productivity-led growth. Speaking at a press conference on Saturday, Aurangzeb emphasized the importance of strengthening exports across all sectors of the economy, highlighting the government’s focus on fostering long-term economic stability through increased exports and improved productivity.
Aurangzeb expressed satisfaction with recent developments, particularly in the auto sector, where exports have seen a notable uptick in the last two months. He noted that this progress was indicative of the government’s successful efforts to diversify and enhance export capabilities across various industries. The finance minister made it clear that the government’s strategy to focus on exports was not limited to one sector but rather an overarching approach aimed at boosting the country’s economic resilience.
In terms of foreign exchange reserves, the finance minister expressed optimism, pointing to a significant rise driven by robust remittances. He expressed confidence that Pakistan’s remittances would reach a record $36 billion by the end of the fiscal year. The inflow of remittances has been a key factor in stabilizing the country’s financial standing, with the finance minister reiterating that the government was committed to maintaining this positive trajectory.
Alongside these encouraging developments, Aurangzeb outlined expectations for Pakistan’s foreign exchange reserves, projecting that they would reach $13 billion by the end of June. This, he suggested, would further bolster the country’s financial position, helping to reduce pressure on the local currency and improving overall economic stability.
In addition to focusing on exports and remittances, the finance minister also addressed domestic fiscal policies. He noted that the Federal Board of Revenue (FBR) is on track to achieve a 32.5% increase in revenue collection this year. This growth in tax revenues is attributed to the government’s efforts to broaden the tax base, with a particular focus on increasing compliance among traders. He highlighted that the FBR had already collected 413 billion rupees from traders, a significant increase compared to the 189 billion rupees collected in the previous year. This growth reflects the government’s ongoing efforts to strengthen the country’s tax collection systems and reduce reliance on external borrowing.
Aurangzeb further emphasized that the government is undertaking comprehensive structural reforms as part of its broader economic strategy. The aim of these reforms is not only to stabilize the economy but also to ensure that Pakistan’s dependency on future International Monetary Fund (IMF) programs is minimized. He expressed confidence that these reforms would pave the way for the current IMF program to be the last one, thereby reducing the nation’s reliance on foreign assistance in the future.
The finance minister also shared optimism regarding the ongoing negotiations with the IMF, hoping for a swift approval of the second tranche of the loan, which amounts to one billion dollars. The disbursement of this tranche is seen as a critical step in maintaining Pakistan’s economic stability and supporting continued growth.
In conclusion, Minister Aurangzeb’s statements underscore a clear government direction towards fostering sustainable economic growth through export expansion, robust remittances, and effective fiscal reforms. By prioritizing these areas, the government aims to build a more resilient and self-sustaining economy for Pakistan in the coming years.