Interim Finance Minister Shamshad Akhtar expressed optimism about the state of Pakistan’s economy on Friday, stating that there were “some signs” of economic recovery, although it was still in its early stages. Speaking at a press conference in Islamabad alongside other federal ministers, Akhtar acknowledged the challenges faced by the interim government but reassured the public that they were being dealt with.
Akhtar highlighted that the government was taking prudent measures to manage the country’s challenges by controlling expenditures and increasing revenue. She emphasized that these efforts would lead to an improvement in the economic situation.
Discussing macroeconomic indicators, the minister pointed out that the Consumer Price Index (CPI) had declined from 38% in May to 27% currently. This decline, she noted, was an essential indicator of the country’s recovery from economic difficulties, and she anticipated stability in prices moving forward.
Akhtar also mentioned the improvement in the country’s productive sectors, particularly the agriculture sector. She expressed hope for positive results in major and minor crop production, which would contribute to overall growth prospects.
Regarding industries, the minister observed that as economic activity picked up, the situation for industries was improving. She highlighted the significance of the services sector, describing it as “vibrant” and interconnected with all other sectors.
Akhtar addressed the central bank’s decision to maintain the key policy rate, explaining that it would lead to an improvement as the cost of borrowing for industries would decrease.
She mentioned the government’s communication with international donors, specifically the World Bank, with the aim of securing cumulative assistance amounting to $2 billion. These efforts were focused on activities that would benefit the people and instill confidence in Pakistan’s economy to attract foreign direct investment.
The minister assured that the country’s foreign exchange reserves were stable, even though they were not at a high level. She also commended the government’s crackdown against exchange companies, which resulted in the stabilization of the Pakistani rupee without any intervention from banks.
In addition to the discussion on the economy, Power Minister Muhammad Ali announced that the government would stagger quarterly adjustments in power bills over three months to provide relief to consumers. He also highlighted the success of the government’s crackdown on electricity theft, which was resulting in improved billing and collection.
Ali emphasized the government’s commitment to further clamp down on electricity theft and improve the management and governance of electricity distribution companies. The government was exploring various options, including working with the World Bank for long-term concessions and privatizing these companies, to enhance their performance.
The minister acknowledged the mounting circular debt in the power and gas sector and attributed it to the mismanagement of the previous government. However, he reassured the public that the government was implementing solutions to reduce reliance on other countries for fuel and gas, thus mitigating losses.