May 07, 2024 (MLN): The Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) may consider the interest rate cut in June or July as inflation is showing signs of decline, Finance Minister Senator Muhammad Aurangzeb said during the press conference held today.
Highlighting the positive outcome of Saudi Arabia's recent visit to Pakistan, the Finance Minister emphasized the fruitful discussions held with the Saudi delegation, signaling potential avenues for economic cooperation and investment.
During the briefing, he also underscored the imminent achievement of economic stability in the country.
The Minister said that the country's economic indicators were going in the right direction and had increased the confidence of foreign investors in the economic governance of Pakistan.
Aurangzeb said that export-led growth, Foreign Direct Investment (FDI), and excess to capital were the priority of the government.
The senator said that due to the prudent economic policies of the government and the progress in the economic indicators, foreign investors were ready to invest in Pakistan.
He also highlighted the positive trend in foreign exchange reserves.
To note, the central bank has more than doubled its FX reserves from January 2023 ($3.1 billion) to around $8bn on May 02, 2024, despite the repayment of a $1bn Eurobond last month.
The reserves will further rise to about $9bn this week following the final trance of the International Monetary Fund (IMF).
While the country's official reserve assets, including foreign currency reserves, reserve position in funds, Special Drawing Rights (SDRs), gold, and other reserve assets are stable at $15bn and it would increase further, he added.
He highlighted that the current tax to Gross Domestic Product (GDP) ratio was 9% which would be increased to 13%.
On IMF, the Finance Minister said that an IMF team is scheduled to visit Pakistan this month, which will further pave the pave to strengthen economic policies and frameworks.
Emphasizing the importance of infrastructure development for economic advancement, the Finance Minister outlined plans to prioritize infrastructure improvements to bolster the country's economic foundation.
The Finance Minister also stressed the urgency of implementing reforms to streamline the taxation system and enhance revenue generation.
Highlighting the importance of fiscal discipline, the Finance Minister called for measures to curtail non-development expenditure, ensuring optimal allocation of resources.
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Posted on: 2024-05-07T14:30:02+05:00
