ISLAMABAD
\nAdvisor to Finance Minister on Economic and Financial Reforms, Khurram Schehzad said that said the country\u2019s economy witnessed considerable gains as indicated by various indicators.
\nHighlighting various economic developments, the advisor in a statement issue here said, inflation was under control, smuggling was curbed while remittances are expected to reach historic level of $35 billion in fiscal year 2024-25.
\nHe said decline in inflation was a welcome relief for the masses adding to ensure prices remain affordable, the finance minister, heading the ECC, has initiated a practice to regularly monitor prices of basic products and commodities. This timely monitoring enabled the government to take effective actions, making policies more impactful and beneficial to the people.
\nHe said, the government has taken decisive action against smuggled petroleum products, scrutinizing thousands of petrol pumps and shutting down hundreds involved in the illicit trade. The action resulted in a historic growth in documented sales, supporting economic activity and boosting revenue.
\nLikewise, the government was actively working to shut down smuggled and illegal tobacco sales, particularly in informal markets and bazars. This effort aims to curb the illicit trade, which will have a positive impact on the economy and public health.
\nOn remittances, Khurram quoted Governor State Bank of Pakistan (SBP) as having said the remittances were expected to reach historic levels of $35 billion in FY25, with an average of $2.9 billion per month so far. This significant influx of foreign exchange will strengthen reserves, providing a much-needed boost to the economy.
\nSimilarly, the SBP is set to launch a new platform, InvestPak, allowing individuals and corporates to invest directly in government securities. By bypassing banks, investors can earn better returns, encouraging a culture of savings and investment in the economy.
\nHe said, there also had been a notable shift towards localization of imported raw materials, with top FMCGs in Pakistan sourcing more materials locally. This import substitution has resulted in a significant reduction in imports, with volumes rising and only 35% of materials now sourced through imports. This trend has contributed to stable forex reserves, currency stability, and overall external de-risking of the economy.
\nFor instance, he said, if 70% of the raw material was being sourced through imports earlier, it\u2019s now down to around 35%. This import-substitution could be one of the key reasons why imports are not rising as such (4% in 5 months) while exports have shown consistent growth (13% in 5 month), resulting in better forex reserves, currency stability and overall external de-risking of the economy.<\/p>\n","protected":false},"excerpt":{"rendered":"
ISLAMABAD Advisor to Finance Minister on Economic and Financial Reforms, Khurram Schehzad said that said the country\u2019s economy witnessed considerable gains as indicated by various indicators. Highlighting various economic developments, the advisor in a statement issue here said, inflation was under control, smuggling was curbed while remittances are expected to reach historic level of $35 […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-448192","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n