Federal Minister for Finance and Revenue Muhammad Aurangzeb Wednesday reaffirmed that Pakistan’s macroeconomic indicators are “moving in the right direction”.
Addressing the ‘International Affordable, Green & Resilient Housing Conference’, organised by the Pakistan Mortgage Refinance Company (PMRC), Aurangzeb highlighted the government’s progress over the past 12 to 14 months.
“We have made good and significant progress, whether it is the reversal of the country’s bane, and both fiscal and current accounts.
“Month after month, we are showing surpluses and leading towards a sustainable point,” said Aurangzeb.
During his address, the minister reiterated that the authorities remain committed to implementing the International Monetary Fund (IMF) programme.
Aurangzeb, a former banker, said the country’s foreign exchange reserves have improved from just two weeks of import cover to now 2.5 months.
“If we stay on this trajectory by the end of this fiscal year, we will be at 3 months of import cover, which will be a good place to be in terms of international benchmark,” he said.
The minister shared that the inflation rate declined to 4.9% in November 2024, the lowest in 78 months.
Addressing monetary policy, he stated that while interest rate decisions remain under the central bank’s purview, there have been positive developments in market rates.
“The 6-month KIBOR has dropped below 13%. Large corporates are actually borrowing in single digits, so we are moving in the right direction,” he said.
Turning to the housing sector, Aurangzeb underscored its importance linking it to two existential problems of Pakistan i.e. population and climate.
He stated that the government is committed to providing policy support to boost private enterprise, particularly focusing on the housing sector.
“Housing is a critical element, so to fix it and get it right is going to be critical as we go forward,” he said.
“However, we are not going back to directed lending, it creates distortions and has its implications for the medium term,” he maintained.
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