Economy
Caretaker Finance Minister Shamshad Akhtar delivered positive economic projections on Saturday, stating that Pakistan’s economy is expected to grow by 2-2.5% in the current fiscal year 2023-24. Addressing the ‘IPO Summit 2024,’ organized by the Pakistan Stock Exchange (PSX), Akhtar highlighted the nation’s significant strides in achieving macroeconomic stability, a favorable exchange rate, and financial stability despite challenges.
The finance minister forecasted a positive rebound in growth, with agriculture anticipated to grow by 5.6% and the industrial sector by 2.5% during the current fiscal year. Emphasizing the importance of a conducive environment for capital markets, Akhtar noted that a very high-interest rate regime hampers market growth.
She stated that the State Bank of Pakistan (SBP) is aware of the need to lower interest rates, contingent on inflation decreasing. Acknowledging the uptrend at the PSX, Akhtar praised the bourse’s 55% return in 2023 and the KSE 100 Index reaching over 62,450 points in December 2023.
On the external front, the caretaker minister highlighted that foreign exchange reserves have reached $9.1 billion, attributed to the International Monetary Fund (IMF) tranche and multilateral flows.
Notably, Pakistan recently received a $700 million loan tranche from the IMF under the nine-month Stand-By Arrangement (SBA) after the completion of the first review of Pakistan’s economic reform program.
The IMF’s decision to disburse approximately $700 million signifies a total disbursement of around $1.9 billion under the arrangement. This approval follows the staff-level agreement reached between the IMF and Pakistan on November 15, 2023, emphasizing the nation’s commitment to implementing crucial reforms for economic stability and growth.
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