The government has no other choice but to proceed with crucial reforms in taxation, privatization, energy, and State-Owned Enterprises (SOEs) backed by the International Monetary Fund (IMF), Finance Minister Muhammad Aurangzeb said on Thursday. These reforms, according to the minister, are unavoidable and the government can no longer afford to delay their implementation.
Aurangzeb highlighted recent economic developments, such as Fitch’s credit rating upgrade from CCC to CCC+ and the State Bank of Pakistan’s (SBP) decision to lower the policy rate, as indicators of macroeconomic stability. He emphasized the importance of maintaining the current progress to achieve sustained economic growth.
The minister also recommended that the private sector should manage the entire insurance industry to enhance efficiency. He called for export-led growth and increased foreign direct investment, stressing that external borrowing should be directed towards projects that generate foreign currency for the country. Additionally, he advocated for a more prominent role for the equity and debt markets in supporting the economy.
Aurangzeb’s statements underline the government’s commitment to pursuing necessary economic reforms and leveraging private sector participation to bolster Pakistan’s economic landscape.