Pakistan Achieves Macroeconomic Stability, Economic Indicators Show Positive Trends: Finance Minister

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced on Thursday that Pakistan has achieved macroeconomic stability, with all major economic indicators reflecting positive trends. Speaking at the Inaugural Ceremony of the Buna-Raast Connectivity Project Implementation Phase, the Finance Minister emphasized that the country is currently experiencing a phase of economic stability, which lays the groundwork for sustainable economic growth.

Senator Aurangzeb highlighted that key economic metrics, including foreign reserves, workers’ remittances, policy rates, the exchange rate, revenue collection, and the twin deficits, particularly the Current Account Deficit, are all moving in a favorable direction. He noted that this positive shift is fostering economic growth, with foreign investors increasingly confident in Pakistan’s economic prospects.

The Minister also pointed out that the country has a two-month import cover, and the exchange rate remains stable, further reinforcing economic stability. Over the past two months, there has been a surge in interest from foreign companies and potential investors, eager to invest in various sectors of the economy.

Focusing on the digital economy, Senator Aurangzeb stated that the government is prioritizing the documentation of the local economy through digitalization. He attributed the recent economic improvements to the government’s prudent economic policies, including reforms and administrative measures, which resulted in the country receiving $3 billion in workers’ remittances in July 2024.

The Minister also underscored the government’s commitment to tax and energy reforms, alongside broader structural reforms, as part of its strategy to achieve sustainable economic growth.

Discussing the Buna-Raast Connectivity Project, Senator Aurangzeb described it as a landmark collaboration between Pakistan and the Kingdom of Saudi Arabia (KSA). The project not only facilitates legal financial transactions but also contributes to the evolution of the digital economy in Pakistan. He added that Pakistan fully supports KSA’s Vision 2030 and has drawn valuable lessons from it to pursue sustainable economic growth.

Buna, operated by the Arab Regional Payments Clearing and Settlement Organization (ARPCSO) under the Arab Monetary Fund (AMF), is a cross-border payment system designed to enable financial institutions and central banks in the Arab region and beyond to send and receive payments in both local and major international currencies in a secure, cost-effective, and transparent manner. Buna provides modern payment solutions that meet international standards and compliance requirements.

Raast, the State Bank of Pakistan’s (SBP) Instant Payment System, is another transformational initiative that follows international standards (ISO 20022). Launched in February 2022, the system facilitates person-to-person (P2P) payments, with approximately 34 million Raast IDs created to date, facilitating over 270 million transactions worth around PKR 5.5 trillion (USD 19 billion).

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