WASHINGTON, Oct 24 : Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Thursday said that Pakistan has achieved macroeconomic stability and now the country\u2019s economy is moving towards attaining its economic goals.
\nAurangzeb expressed these words with the Agence France-Presse (AFP) while leading Pakistan\u2019s delegation to the annual meetings of the World Bank and International Monetary Fund (IMF) headquarters in Washington.
\nHe has touted progress on the country\u2019s current account deficit and the stabilization of the Pakistani rupee, which has depreciated against the US dollar by about 65 percent since 2020.
\n\u201cIn May and June on the back of this macroeconomic stability and building up on our reserves, we paid more than $2 billion to our existing international investors,\u201d he said.
\nAurangzeb said Pakistan had been behind on existing profit and dividend repayments when the current government took office, and had taken steps to remedy that after making progress on macroeconomic stability.
\nThe finance minister said that alongside privatizing state-owned enterprises (SOEs), Pakistan\u2019s IMF deal also rests on increasing its tax base, and reforming of the country\u2019s power sector.
\nAurangzeb told AFP there was a common theme between all three major issues.
\nPakistan is hoping to finalize the delayed privatization of its flag carrier and the outsourcing of Islamabad\u2019s international airport in November, the minister said.
\nDuring a previous interview with AFP in April, Aurangzeb had said he hoped the privatization of the government-owned Pakistan International Airlines (PIA) could be completed by June 2024.
\nThe finance minister said the five-month delay was down to two factors: ensuring macroeconomic stability, and doing the proper due diligence of the interested parties.
\n\u201cThe reality is, when any foreign investor comes in, or even the local investor, who is going to put in a substantial amount of money, they want to ensure that the foundation is there,\u201d he said, referring to macroeconomic factors.
\nAurangzeb noted that potential bidders for both PIA and Islamabad airport also required scrutiny, another factor in the delay.
\n\u201cTherefore it\u2019s ultimately the cabinet which approved the extension in the timelines so people can do their due diligence before they make these submissions,\u201d he said.
\nThe country came to the brink of default last year as the economy shriveled amid political chaos following catastrophic 2022 monsoon floods and decades of mismanagement, as well as a global economic downturn, he said.
\nThe minister said that inflation peaked at 38 percent, but has since dropped to less than seven percent, after the central bank maintained sky-high interest rates, amid other government tightening measures, including import bans to preserve foreign exchange.
\nLast month, the IMF approved a $7 billion loan, Pakistan\u2019s 24th such payout from the multilateral lender since 1958, he said.
\nAccording to the IMF, Pakistan\u2019s gross public debt currently stands at 69 percent of GDP, or roughly $258 billion.<\/p>\n","protected":false},"excerpt":{"rendered":"
WASHINGTON, Oct 24 : Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb on Thursday said that Pakistan has achieved macroeconomic stability and now the country\u2019s economy is moving towards attaining its economic goals. Aurangzeb expressed these words with the Agence France-Presse (AFP) while leading […]<\/p>\n
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