During a media interaction at a local hotel on the occasion of the Securities and Exchange Commission of Pakistan’s mortgage launch event, Federal Minister for Finance Muhammad Aurangzeb provided significant updates on the country’s economic situation and upcoming financial measures.
The Finance Minister revealed that Pakistan will launch Euro bonds once the country’s credit rating reaches the “B” category, which is expected in the next few months. “We have had positive discussions with Fitch, Moody’s, and S&P, and we are in continuous contact with them to improve our economic standing,” the minister stated.
The Minister also highlighted ongoing negotiations with the World Bank and the Asian Development Bank (ADB) regarding climate financing. “We have also been in talks with the Vice President of the Asian Infrastructure Investment Bank (AIIB) today. We need to present our plans effectively to secure the $1 billion in climate financing,” he added.
The Finance Minister Aurangzeb projected that Pakistan’s foreign exchange reserves will reach $13 billion by June 2025. He noted that once reserves reach this level, they will cover three months of imports, providing much-needed stability to the economy. “This will ensure that our import needs are safeguarded,” he explained. Investment
Regarding local investment, the Finance Minister emphasized that interest rates had been reduced to attract domestic investors and traders. “The Karachi interbank market rate is currently at 13%, and we expect it to decrease further,” he said. He also pointed out that the government needed to improve the taxation system and reduce energy costs, and the Ministry of Energy was already working on reducing power tariffs. The Minister stressed that ongoing digitalization would close the doors to corruption within the Federal Board of Revenue (FBR).
“This is a crucial step that will increase the tax net and reduce corruption,” he remarked. The Finance Minister further stated that Pakistan was attracting interest from friendly countries for large-scale investments, with global financial institutions increasingly confident in Pakistan’s economic prospects.
“We have stabilized our economy, and now it is the responsibility of regulators and banks to continue fostering economic growth,” he said. The Minister Aurangzeb that several steps had been taken to achieve the country’s economic targets for the next fiscal year, aiming to accelerate the pace of economic development.
