Finance Minister Muhammad Aurangzeb has indicated that the government aims to bring the policy interest rate down to a single digit. Speaking at the Pakistan Economic Growth Conference organized by the Federation of Pakistan Chambers of Commerce and Industry in Lahore, he expressed hope that this target would be achieved soon.
The finance minister told business leaders that his experience working in the private sector has helped him better understand their problems now that he is part of the government. He assured them that their suggestions would be included in policy making, even if full implementation takes more than a year.
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Aurangzeb revealed that Pakistan successfully made a 500 million dollar payment for Euro bonds in September. He said the country is now moving from economic stabilization toward growth, with large-scale manufacturing showing 10 percent growth. He projected the country’s growth rate to reach between 1.5 and 1.75 percent.
During his address, the minister shared that he has not taken a salary for the past two years and has paid the super tax as decided by the Supreme Court. He expressed confidence that interest rates would soon come down to a single digit.
The minister emphasized that digitalization of the economy will bring transparency and increase revenues. He noted that foreign exchange reserves are steadily increasing and that Pakistan’s economy is moving toward stability and development. Work is underway in the construction sector, and taxes related to construction are rising.
Aurangzeb acknowledged that the government alone cannot provide jobs to 240 million people. He stressed the need for the private sector to take the lead in creating employment opportunities. He said Prime Minister Shehbaz Sharif considers the business community a partner and will address their challenges personally in the coming days.
The finance minister also pointed out that Pakistan’s IT exports are bringing in around 10 million dollars, but a significant amount of money is leaving the country through informal hundi and hawala channels. He assured that problems related to banking transactions with Iran are being addressed.
