Finance Minister Muhammad Aurangzeb on Wednesday expressed optimism about Pakistan’s economic trajectory, citing a sharp increase in foreign exchange reserves, a current account surplus after a decade, and lower inflation as key positive indicators.
Addressing the Economic Coordination Committee, Aurangzeb noted that foreign reserves, which used to cover barely two weeks of imports, have now increased to 2.6 months. “We are confident that by the end of this fiscal year, reserves will reach three months’ import coverage,” he said, describing this as an important signal to international rating agencies.
The minister highlighted a 35% increase in remittances year-on-year, which he expected to reach $35 billion by June 2025. In addition, Roshan Digital Account (RDA) inflows crossed $9 billion, reflecting the continued confidence of overseas Pakistanis. .
Aurangzeb pointed to low inflation, which fell to 4.9% in November, its lowest level in more than six years. He attributed this to prudent fiscal management and monetary adjustments, including the State Bank of Pakistan’s recent cut of interest rates to 13%, the fifth consecutive cut since June 2024.
He added that lower borrowing costs are benefiting industries, as key lending benchmarks such as Kibor have fallen below 12%. “Debt servicing costs for large companies have been cut in half, which will help industrial growth.”
Aurangzeb reiterated the importance of macroeconomic stability, saying it is the basis of sustainable growth. “We are seeing growing investor confidence, and this momentum must continue to unleash Pakistan’s economic potential,” he concluded.