GDP to grow 2-2.5% in FY24 amidst ongoing reforms: Dr. Shamshad Akhtar

November 21, 2023 (MLN): With the government actively pursuing structural reforms to strengthen and stabilize the overall economy, the GDP is expected to grow between 2 to 2.5% in FY24, as highlighted by the caretaker Finance Minister, Dr. Shamshad Akhtar, during the meeting of the Donor Coordination Committee (DCC) on Monday.

During the meeting, the Federal Minister highlighted the steadfast and critical support of development partners in supporting Pakistan.

Despite external factors impacting Pakistan’s economy, including tightening global financial conditions and rising commodity prices, the successful review of the IMF staff-level agreement was a significant achievement.

She emphasized the government’s commitment to macroeconomic adjustment and welcomed ongoing support from development partners.

She stated that the government is actively pursuing reforms in fiscal consolidation, monetary policy, currency market sustainability, energy, business environment, and social safety nets.

She acknowledged the challenges faced by vulnerable households due to fiscal belt tightening and highlighted the government’s commitment to addressing poverty and improving economic conditions.

Representatives from the World Bank, EU, ADB, USAID, UNDP, Germany, Japan, WFP, IsDB, IFAD, and others expressed congratulations on the successful IMF review.

The development partners pledged continued support to the Government of Pakistan and acknowledged the importance of transparency, alignment with government priorities, and the need for timely disbursement of committed support.

The Minister expressed gratitude for the support received and emphasized the need for cooperation to track off-budget support.

Drawing attention to the devastating floods in Sindh and Balochistan, she emphasized the critical need for swift and efficient transactions, prioritizing the timely disbursement of committed support to effectively address these challenges.

As the government prepares for the upcoming CoP-28, the chair called for efforts to optimize the capital of Multilateral Development Banks (MDBs) and increase lending headroom.

The appeal for debt for nature and debt for social development swaps was reiterated, signalling a commitment to meeting climate finance targets.

Present at the meeting were distinguished ambassadors from Italy, Japan, and Kuwait to Pakistan.

Notable international donor agencies in attendance comprised the World Bank, ADB, AFD, USAID, UNDP, JICA, TIKA, WFP, KOICA, FCDO, UNICEF, KfW, and IsDB.

Diplomatic representation extended from the Embassies of the United States of America, Republic of Korea, France, Denmark, and People’s Republic of China.

The meeting concluded with a commitment from development partners to continue dialogue and cooperation.

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