Pakistan's Economy Shows Signs of Recovery, by Minister Aurangzeb

Finance Minister Mohammad Aurangzeb announced encouraging signs of economic recovery at The Future Summit. He highlighted key macroeconomic indicators such as:

• Stable Rupee: The local currency has shown resilience, signaling exchange rate stability.
• Foreign Exchange Reserves: An increase in foreign reserves reflects better external financial management.
• Declining Inflation: Inflation rates, especially food inflation, are on a downward trend.
• Reduced Interest Rates: Lower rates are expected to boost investment and economic growth.

Key Economic Improvements

• Credit Rating: Pakistan’s credit rating has improved, with potential for further upgrades, bolstering investor confidence.
• Twin Deficit Management: Aurangzeb credited fiscal and current account deficit reductions as pivotal to economic stability.

Government Initiatives

The Economic Coordination Committee (ECC) is actively monitoring essential commodity prices like chicken and pulses to prevent inflation spikes.

Future Outlook

Despite the slow growth forecast of 1.8% for the current fiscal year by the World Bank, sustained economic reforms could propel Pakistan toward achieving upper-middle-income status by 2047.

The minister underscored the need for continued policy adjustments to ensure long-term economic resilience.