Islamabad
\nThe Current Economic Stability Is Backed by Difficult but Necessary Reforms, and We Are Staying the Course\u201d\u2013Finance Minister Underscores Reform Commitment in Talks with UAE Banks
\nThe Ministry of Finance held a series of virtual meetings today with three UAE banks\u2014Sharjah Islamic Bank, Abu Dhabi Islamic Bank, and Ajman Bank\u2014regarding their support to Pakistan\u2019s development and fiscal objectives. These meetings were chaired by the Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, and attended by senior officials of the Finance Division and other relevant stakeholders.
\nThe Finance Minister thanked Standard Chartered Bank and Dubai Islamic Bank for their valuable role in organizing these interactions and facilitating engagement with potential partners. The Minister also appreciated Asian Development Bank\u2019s collaboration and support to Ministry of Finance for supporting Pakistan\u2019s fiscal and deve goals.
\nIn his remarks, he highlighted Pakistan\u2019s steady progress toward macroeconomic stability, stating that \u201cwe have come a long way\u2014this year we are on track to close with an year long current account surplus, a primary surplus, and forex reserves approaching USD 14 billion, providing three months of import cover.\u201d He added that inflation has eased to 0.3 percent and the policy rate has also come down significantly, showing a positive outlook for the economy.
\nThe Minister emphasized that structural reforms in the country form the basis of this recovery and underscored that the government is firmly committed to long-term reforms, including the restructuring of State-Owned Enterprises, an active privatization program, and rightsizing of the federal government. \u201cWe have broken away from the old boom and bust cycle. The current stability is backed by difficult but necessary reforms\u2014and we are staying the course,\u201d he said.
\nOn the revenue side, he shared that Pakistan is set to reach a tax-to-GDP ratio of 10.6 percent by June 2025, with a target of 11 percent in the next fiscal year. The government is prioritizing FBR reforms and end-to-end digitization to broaden the tax base and improve compliance.
\nHe also noted that the ongoing progress is backed by the approval of disbursement of the second tranche under the IMF\u2019s Extended Fund Facility (EFF) and approval of USD 1.3 billion under the new Resilience snd Sustainability Fund (RSF). Pakistan has met all quantitative targets under the IMF program and has also achieved key structural benchmarks, including the introduction of agricultural income tax\u2014a milestone measure in the country\u2019s fiscal history.
\nThe Minister also referenced the recent improvement in Pakistan\u2019s sovereign credit rating by Fitch as a reflection of market confidence.
\nLooking ahead, the Finance Minister emphasized Pakistan\u2019s shift towards a productivity- and export-led growth model.
\nHe pointed to robust growth in the IT sector, with exports reaching USD 3.4 billion in March, and momentum in the minerals and mining sector. He mentioned that the Reko Diq project has stimulated interest in Pakistan\u2019s mining potential and we aim to leverage copper reserves both for exports and energy transition.
\nDuring the interactive sessions, senior executives of the three banks acknowledged the progress and shared their comments and views on Pakistan\u2019s economic plans.
\nThe meeting concluded with mutual interest in continuing the dialogue and exploring potential avenues for collaboration. The Finance Minister reaffirmed Pakistan\u2019s openness to quality commercial partnerships that contribute to economic growth, development financing, and investor confidence.<\/p>\n","protected":false},"excerpt":{"rendered":"
Islamabad The Current Economic Stability Is Backed by Difficult but Necessary Reforms, and We Are Staying the Course\u201d\u2013Finance Minister Underscores Reform Commitment in Talks with UAE Banks The Ministry of Finance held a series of virtual meetings today with three UAE banks\u2014Sharjah Islamic Bank, Abu Dhabi Islamic Bank, and Ajman Bank\u2014regarding their support to Pakistan\u2019s […]<\/p>\n","protected":false},"author":2,"featured_media":474665,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-479559","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n