ISLAMABAD, Sep 20 (NNI): Finance Minister Senator Muhammad Aurangzeb expressed hope that the nation would hear good news from the International Monetary Fund (IMF) after its Executive Board meeting on September 25.
The finance minister made these remarks while chairing a meeting of the Economic Coordination Committee (ECC) of the Cabinet in Islamabad.
At the outset, Senator Muhammad Aurangzeb shared an update on the current economic situation and the macroeconomic stability achieved across all sectors of the economy.
He stated that the currency is now in a stable position, with foreign exchange reserves at a 26-month high, supported by “very resilient and strong remittance flows.”
He also noted that IT exports have stabilized at around $300 million monthly, which is positive news for the export sector.
The finance minister lauded the steady growth in the RDAs, with $165 million in inflows received last month. He called the reduction in inflation to single digits a significant achievement, expressing hope that inflation would decrease further when the September data is released.
He emphasized that macroeconomic stability is not an end in itself but a means to an end, calling it the “basic hygiene” and the building blocks that form the foundation of the broader economy.
“We are moving in the right direction based on this approach and will ensure gradual stability in the micro-sectors as well,” he added.
He described the current account situation as very encouraging, noting the $75 million surplus achieved in August. He expressed optimism that with softer oil prices, a softer dollar, and an aggressive rate cut (which had already been reduced by 450 basis points), the current account position would continue to improve.
The minister also commented on the government’s rejection of all bids for treasury bills on Wednesday, stating that the move was intended to signal that the government is not desperate to borrow and, if it were to borrow, it would do so on its own terms.
Later, during the meeting, the ECC considered a summary from the Ministry of Industries and Production regarding the export of 40,000 metric tons of sugar to Tajikistan.
Earlier, the International Monetary Fund (IMF) included Pakistan on the agenda of its Executive Board meeting scheduled for September 25, 2024.
The Executive Board will consider the final approval under the US$7 billion Stand-By Arrangement (SBA).
Sources indicated that if the IMF Executive Board expresses satisfaction with Pakistan’s progress, it would pave the way for the release of installments. Finance Minister Muhammad Aurangzeb announced that all matters with the IMF have been settled amicably. NNI
