Finance Minister Muhammad Aurangzeb conveyed a message of confidence and optimism regarding Pakistan's economic trajectory during a recent roundtable meeting with Bloomberg.
Aurangzeb stressed that the value of the Pakistani rupee is unlikely to experience further depreciation in talks with the International Monetary Fund (IMF). He also talked about foreign exchange reserves being strong and the stability of the exchange rate as contributing factors to this assessment.
Moreover, he projected that the economic growth rate would surpass 4% in the coming years, adding that remittances and exports were increasing.
Expressing his stance on currency depreciation, the minister stated firmly that there is no justification for the rupee to depreciate by more than 6% to 8% annually. He reassured stakeholders that there are no imminent reasons for the rupee to witness further depreciation.
The minister further hinted that an IMF mission is anticipated to visit Pakistan in May, but also refrained from commenting on the size of a potential new debt program. However, reports from Bloomberg suggest that Pakistan may consider applying for a new $6 billion program, and it expects that a new deal with the IMF will enhance the country's international bond and stock market performance.
Looking ahead, Aurangzeb outlined the government's efforts to bolster key sectors such as industry, agriculture, and information technology. These initiatives, he believes, will contribute to an increase in Pakistan's economic growth rate in the foreseeable future.
Despite expressing concerns about the possibility of rising global oil prices, Aurangzeb remained resolute in his optimism for Pakistan's economic prospects. He indicated that a staff-level agreement for a new loan from the IMF is expected to be reached by late June or early July.
The roundtable discussion with Bloomberg provided a platform for Aurangzeb to articulate Pakistan's economic strategy and reassure investors and stakeholders about the country's resilience and potential for sustained growth. As Pakistan navigates through economic challenges and opportunities, Aurangzeb's optimism serves as a beacon of hope for the nation's economic future.
