ISLAMABAD: On Friday, Caretaker Finance Minister Shamshad Akhtar said that there were “early indications” of economic recovery, “even if they were just starting”.
Addressing a press conference in Islamabad alongside other federal ministers, she emphasized that despite inheriting a set of challenges, the interim set-up was not concerned and was actively addressing them.
Shamshad Akhtar stated that the government was prudently managing the country’s challenges by controlling expenses and boosting revenue, which she believed would lead to an improved situation.
Regarding macroeconomic indicators, she pointed out signs of early economic recovery, citing a decline in the Consumer Price Index (CPI) from 38% to 27% since May as a crucial positive indicator.
Caretaker minister highlighted improvements in the agriculture sector, expecting positive results in both major and minor crops, which would enhance growth prospects.
She noted that despite complaints about difficulties faced by industries, data indicated improvement in some productive sectors as economic activity picked up.
The minister described the services sector as vibrant and interconnected with other sectors, emphasizing its significance.
Caretaker Finance Minister’s Key Points on Economic Stability
Discussing the central bank’s decision to maintain the key policy rate, she anticipated that it would lead to improved industry borrowing costs.
Akhtar mentioned government efforts to secure international donor assistance, including discussions with the World Bank to accumulate $2 billion in assistance, with the aim of boosting foreign direct investment and building confidence in Pakistan’s economy.
She expressed confidence in achieving self-sustaining growth by addressing issues related to foreign direct investment through government and Special Investment Facilitation Council (SIFC) initiatives.
Regarding foreign exchange reserves, she described them as stable, even though not exceptionally high, given the country’s inflow and outflow.
She also commented on the government’s crackdown on exchange companies, noting that it had contributed to stabilizing the rupee to some extent, without the need for bank intervention. Akhtar concluded by stating that the government’s tireless efforts would yield visible results in due course.
