Pakistan eyes 4% plus growth on reforms, fiscal discipline

According to Mettis Global, Finance Minister Senator Muhammad Aurangzeb has set a growth goal of 4% or higher for the present fiscal year. He made the remarks at a Citi Macro Forum session for international investors, tying the target to macroeconomic stabilisation, fiscal restraint and ongoing structural reforms. He presented the economy as moving onto firmer ground.

He cited three straight years of primary budget surpluses, a fiscal shortfall that is the smallest in 22 years, and larger foreign exchange reserves as evidence of better fundamentals. Plans were also outlined to broaden financing through additional Panda bonds, Sukuk and a rupee-denominated bond settled in dollars. The aim is to lower borrowing costs, lengthen debt maturities and widen access to global capital markets.

Turning to the IMF programme, he discussed reforms that broaden the tax base, strengthen enforcement and improve coordination with provinces to keep fiscal discipline. On external risks, he addressed the Middle East conflict's economic effects and outlined steps to ensure uninterrupted energy supplies, along with targeted aid for vulnerable groups within the existing budget. He also reaffirmed a pledge to move economic ties away from reliance on aid and toward more trade and investment.