Finance Minister Muhammad Aurangzeb has said Pakistan’s economy, valued at $407 billion, has been hit by recent floods but is expected to remain stable.
In an interview with Bloomberg, the minister said damage to rice and cotton crops caused by heavy monsoon rains will affect economic growth, but the overall outlook remains steady. Growth is likely to stay between 3.5 and 4 per cent, despite the adverse conditions.
The floods, which began in late June, caused severe damage in the Punjab region, displacing over 4 million people and resulting in nearly 900 deaths. Initial assessments confirm major agricultural losses, with further evaluations expected in the coming months.
The finance minister said climate change is not a theoretical matter for Pakistan, but a lived experience, citing the recent floods as evidence.
He said that Pakistan plans to issue $250 million worth of yuan-denominated Panda bonds in late November or early December. The move is intended to diversify funding sources. The minister said the country has already accessed dollar, euro and sukuk markets and is now turning to China, home to the world’s second-largest capital market.
The finance czar added that the economy has been recovering, adding that Pakistan is expected to receive a third tranche of $1.2 billion from the International Monetary Fund soon, following a staff-level agreement.
