Foreign delegation met FM, discusses economic challenges

December 11, 2024 (MLN): A delegation of foreign investors met Finance Minister for Finance and Revenue, Senator Muhammad Aurangzeb today, to discuss economic reforms and investment opportunities.

The Finance Minister emphasized challenges such as population growth and climate change, according to APP.

The delegation, organized by Ambassador Ali Jehangir Siddiqui of JS Bank, comprised leading entrepreneurs, business practitioners, and professionals from diverse sectors such as technology, academia, and finance, mostly from the United States.

Ambassadar apprised the minister about the composition of the delegation, the purpose of their visit and their interaction with different stakeholders during the visit so far. 

Aurangzeb elaborated on the government’s comprehensive reform agenda, encompassing privatization, SOE restructuring, rightsizing of the federal government, and pension reforms.

Aurangzeb briefed the investors about the country’s recent macroeconomic progress, highlighting significant achievements in overcoming longstanding challenges. 

He said, “Pakistan has historically struggled with twin deficits; however, due to improved export performance, the economy is now operating with a surplus in both fiscal and current accounts".

"Foreign exchange reserves have crossed the $12 billion mark, inflation has been brought down to single digits, and the policy rate is moving in the right direction,” he further noted. 

Finance Minister stated, “With a population growth rate exceeding 2%, we face severe implications for food security, child stunting, and out-of-school children".

"Climate change exacerbates these vulnerabilities, making it imperative to secure both financial and technical assistance to tackle these issues effectively,” he remarked. 

He also mentioned that he has emphasized the importance of these priorities in discussions with international partners, including World Bank President Ajay Banga.

He remarked, “The willingness and ability to execute reforms are crucial.”

“While we have significant work ahead, as long as we maintain commitment and momentum, and stay the course, we will achieve the desired outcomes.” he added.

Responding to another question, he stressed the role of the private sector in driving economic growth. 

“Policy frameworks and continuity are the government’s responsibility, but the private sector must lead the economy. The government’s focus is on creating an enabling environment to support this transition,” he stated.

The delegation appreciated the government’s efforts in stabilizing the economy and discussed opportunities for collaboration in areas such as innovation, investment, and financial inclusion. 

The meeting concluded with a shared resolve to strengthen U.S.-Pakistan cooperation in achieving mutual economic goals and addressing shared challenges.

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