Mettis Global News
Mettis Global News

WEF echoes FM’s call for global stakeholders to invest in priority sectors

FinMin calls for action on climate change policies
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on whatsapp
WhatsApp

January 21, 2025 (MLN): To invest in Pakistan's priority sectors, including agriculture, IT, renewable energy, and pharmaceuticals, Minister of Finance and Revenue, Senator Muhammad Aurangzeb invited global stakeholders in an exclusive article for the World Economic Forum (WEF) Annual Meeting.

The Minister emphasized Pakistan's transformative journey toward economic stabilization and growth in recent years, according to the press release issued today.

He credited decisive reforms for building a robust foundation for sustainable and inclusive development.

"Confronted with formidable challenges, we implemented decisive reforms to build a robust foundation for sustainable and inclusive development", Aurangzeb said.

"Today, the results of these efforts are becoming evident, with the economy demonstrating resilience and renewed potential", he further stated.

Recalling the challenges faced in 2024 when he assumed office, Aurangzeb noted that inflation had surged to 38%, severely impacting households and eroding purchasing power.

Foreign exchange reserves had dwindled to levels covering barely two weeks of essential imports, industrial output had contracted by 10.3%, and GDP growth had plummeted to 0.2%.

The compounded effects of COVID-19 and devastating floods, causing over $30 billion in damages, further strained the economy.

To address the crisis, the government implemented a series of reforms, including stabilizing the exchange rate, tightening fiscal policies, and curbing inflation through targeted monetary interventions.

Supported by the IMF’s $7bn Extended Fund Facility (EFF), structural improvements were initiated in critical sectors like energy and taxation.

Central to these efforts was the launch of "Uraan Pakistan," an economic transformation plan aimed at achieving sustainable, export-led 6% GDP growth by 2028.

The initiative focuses on public-private partnerships, enhanced export competitiveness, and optimized public finances, targeting key sectors such as agriculture, energy, textiles, pharmaceuticals, and IT.

As part of the transformation, Pakistan collaborated with the World Bank on a $20bn initiative addressing health, education, poverty alleviation, investment, and climate resilience.

This partnership targets critical issues such as child malnutrition, educational outcomes, and clean energy adoption while contributing to global efforts to achieve the UN Sustainable Development Goals (SDGs).

In July 2024, the government introduced a reform-oriented budget, setting an ambitious target of raising Rs13 trillion in revenue, a 40% increase from the previous year.

Reforms focused on broadening the tax base, targeting under-taxed sectors such as agriculture, real estate, and trade, and leveraging technology to enhance compliance and transparency.

Modernizing the Federal Board of Revenue (FBR) was instrumental in streamlining tax administration.

"Today, Pakistan’s economy is on a path to recovery. Inflation has dropped to 4.1%, and foreign exchange reserves now provide over two months of import coverage," Aurangzeb stated.

Goods exports have risen by 7.1%, while the IT sector has grown by 28% year-on-year.

Pakistan’s global default risk has dropped by 93%, signaling renewed confidence in its fiscal stability.

Local and foreign investors, including global giants such as Aramco, BYD, and Samsung, are contributing to the economic revival.

Foreign direct investment (FDI) has grown by 20% in the first half of the fiscal year 2025, while initiatives like the Roshan Digital Account have attracted over $9bn in inflows.

Remittances have reached a record $35bn, and Pakistan's equity market delivered an 87% return in dollar terms.

The country’s progress has been internationally recognized, with all three top global rating agencies upgrading Pakistan's sovereign ratings.

Moody’s revised Pakistan’s economic outlook to "Positive" in September 2024, acknowledging the impact of the government’s policies.

Despite significant achievements, Pakistan is addressing structural inefficiencies in revenue collection, energy, and state-owned enterprises (SOEs).

At the same time, it is focusing on rightsizing the federal government and promoting export-led growth to reduce reliance on international funding programs.

Global stakeholders are invited to support Pakistan’s journey by investing in priority sectors such as agriculture, IT, renewable energy, mining and minerals, textiles and apparel, and pharmaceuticals.

They can capitalize on Special Economic Zones (SEZs) to enhance their investment opportunities.

Pakistan’s innovative approaches in taxation and economic stabilization offer valuable lessons for other developing economies.

Furthermore, partnerships in climate resilience and sustainable development are crucial for advancing shared global goals.

The cornerstone of Pakistan’s economic transformation is political will and visionary leadership.

“This journey is not just about overcoming challenges but about harnessing resilience, determination, and collective effort”, Aurangzeb said.

"With a remarkable workforce, abundant natural resources, and immense production potential, Pakistan is poised to soar to new heights, contributing to regional stability and global economic progress. This is Pakistan, as I see it," he concluded.

Copyright Mettis Link News

Posted on: 2025-01-21T17:33:37+05:00