The economic trajectory of Pakistan is firmly on course for stabilization, attributed to the government’s prudent policies, asserted Finance Minister Muhammad Aurangzeb. Addressing the 8th edition of the Future Summit in Karachi, the Finance Minister highlighted several indicators pointing toward an economic upturn, including a narrowed current account deficit, robust remittance inflows, a fortified rupee, and a recent policy rate cut.
Aurangzeb emphasized the Monetary Policy Committee’s recent decision to slash the interest rate by 2.5%, a move designed to invigorate economic activity and improve credit accessibility. The Karachi Interbank Offer Rate (KIBOR) has been adjusted to 13%, complemented by a notable decline in food inflation. He commended the government’s fiscal discipline, noting that Pakistan is on track to meet its financial targets for the first quarter of the fiscal year.
The Minister underscored the stabilization of Pakistan’s fiscal deficit and current account, noting that remittances have bolstered the domestic currency, while foreign exchange reserves have strengthened. With the State Bank of Pakistan’s reduction in its base interest rate, the nation has taken a significant step toward fostering sustainable growth. “These are the bedrocks on which we can reconstruct our economic framework,” Aurangzeb remarked, adding that Pakistan’s credit rating has shown improvement, with further upgrades anticipated.
He further elaborated on the importance of the recent KIBOR reduction, stating that it will enhance affordability for the private sector in accessing capital, thus supporting investment and expansion. Acknowledging challenges on the horizon, he reaffirmed the government’s dedication to making difficult yet necessary reforms, particularly in areas such as taxation, energy policy, and restructuring public institutions.
Highlighting the urgency of pension reform and the pivotal role of technology in governance, Aurangzeb pointed out that these reforms aim to increase transparency, curb corruption, and improve service delivery. “If these reforms were straightforward, they would have been enacted long ago,” he asserted, urging the private sector to boost productivity and expand business activities to fuel growth.
Senator Aurangzeb also shared that both local businesses and international investors have encouraged the government to maintain its commitment to economic reforms, which are viewed as essential for sustained growth.
In his welcome address, Muhammad Azfar Ahsan, former Federal Minister for Investment and Chairman of Nutshell Group, underscored Pakistan’s strategic significance as the world’s fifth most populous nation, stressing the need to nurture current investors to further enhance the business environment.
The summit, organized by Unity Foods Limited and Nutshell Conferences Group in partnership with Faysal Bank Limited and the Overseas Investors Chamber of Commerce and Industry (OICCI), has gathered industry experts, thought leaders, and innovators to reshape economic strategies and foster meaningful dialogue.
