By Staff Reporter
ISLAMABAD: Finance Minister Muhammad Aurangzeb presented an optimistic outlook for the country’s economy in a virtual meeting with Moody’s Ratings representatives on Tuesday, citing robust foreign exchange reserves, stable inflation, and a surge in foreign remittances.
A Finance Division statement said Aurangzeb had a Zoom meeting with the representatives from Moody’s Ratings and the session was focused on an update on Pakistan’s economic outlook.
“The minister highlighted the foreign exchange reserves surpassing $9 billion, stable CPI inflation at 12.6 percent, and a robust 7.7 percent increase in foreign remittances, reflecting economic resilience,” the statement said.
“He emphasized a 30 percent rise in tax collection in FY2024 and outlined reforms to broaden the tax base, including new agricultural taxes and digital initiatives at the FBR.”
The minister also noted that over 150,000 retailers have registered as first-time taxpayers, marking a significant stride towards broadening the tax base.
Aurangzeb mentioned the ambitious targets aimed to increase revenues by 3 percent of GDP by FY2027, with plans for a primary surplus of 1 percent of GDP, demonstrating Pakistan’s commitment to fiscal sustainability and growth.
Furthermore, Aurangzeb updated Moody’s representatives on the successful completion of Pakistan’s 9-month Stand By Arrangement with the IMF, emphasizing its positive impact on macroeconomic indicators.
He highlighted multilateral institutions’ confidence in financing Pakistan’s developmental projects and apprised Moody’s of Pakistan’s recently finalized Staff-Level Agreement (SLA) with the IMF for a new medium-term program.
The IMF said earlier this month that it had reached an SLA with Pakistan for a $7-billion, 37-month loan programme aimed at cementing stability and inclusive growth.
The IMF said the new Extended Fund Facility (EFF) was subject to approval by its Executive Board and obtain “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”
The Minister underscored ongoing reforms in the energy sector and state-owned enterprises, including privatization and rightsizing efforts aimed at improving operational efficiency and governance.
Moody’s Ratings representatives appreciated the comprehensive briefing and expressed confidence in Pakistan’s economic trajectory underpinned by robust fiscal reforms and strategic initiatives.
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