ISLAMABAD  -  Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb has reaffirmed the government’s commitment to implementing its reforms agenda and meeting structural benchmarks to lend permanence to macroeconomic stability, promote inclusive, sustainable growth and end Pakistan’s reliance on external borrowing.

He made it clear that the only way this goal could be successfully achieved was by changing the DNA of the economy by moving it from away its usual boom-and-bust cycles and leading it to a sustained export-led growth encouraging investment and FDI flows into export-oriented sectors and getting access back to the international capital market.

He made this observation during a meeting with a high-level delegation from the Asian Development Bank that called on the minister at Finance Division yesterday. The visiting delegation was led by Donald Bobiash, Executive Director of Asian Development Bank, and Shigeo Shimizu, Executive Director Asian Development Bank, while Yong Ye, Country Director Asian Development Bank, and other senior officers from the ADB and Finance Division were also present. Senator Muhammad Auragzeb welcomed the delegation and shared with them a roundup of ongoing structural reforms and the resultant growth trajectory and improvement in key economic indicators. He particularly highlighted an efficient management of twin deficits backed by buoyant remittances and healthy exports, a steep fall in inflation from a 38 pc high of last year to a 44-month low of 6.9 pc in September last, and reduction in the policy rate by 450 bps with expectations of more cuts in coming months.

The minister also mentioned the stability in exchange rate, growth in forex reserves to $10.7 billion after the signing of the IMF accord and the stock exchange index crossing 85,000 figure to indicate a growing business confidence and favourable investment climate leading to further institutional flows into the country. He credited Prime Minister Shehbaz Sharif with personally overseeing and spearheading the implementation of wide-ranging structural reforms in key sectors, including taxation, energy, SOEs, privatization, rightsizing of government and pension reforms.

He called the recent signing of a National Fiscal Pact between federation and the provinces a milestone in achieving harmony in driving the pace of structural reforms and incentivizing the provinces to mobilise greater tax resources, rationalize their development expenditures and improve their governance to meet the development goals.

Senator Muhammad Auragzeb thanked ADB for its continued support to Pakistan’s development agenda and its assistance provided in key sectors. He said Pakistan looked forward to further deepen its partnership with the ADB through enhanced assistance and support for its reform programme. Speaking on the occasion, Donald Bobiash, Executive Director of Asian Development Bank, Shigeo Shimizu, Executive Director Asian Development Bank, and other ADB officials expressed their appreciation for the bold reforms undertaken by Pakistan for stabilizing its economy and achieving sustainable growth. They reaffirmed ADB’s support for ongoing reforms and strengthening the country’s fiscal framework. They also assured the bank’s support for Pakistan’s development goals and its efforts for inclusive growth, innovation, and climate action. Meanwhile, a delegation of Executive Directors and Alternate Executive Directors of the Asian Development Bank (ADB) met with Ahad Khan Cheema, Federal Minister for Economic Affairs, to discuss the country’s development priorities and macroeconomic reforms. The delegation is on Pakistan’s visit from 6-12th October 2024 for consultations with the government and key stakeholders to better align ADB’s support with Government’s priorities.

During the meeting, Minister Cheema highlighted the strong partnership between Pakistan and ADB, reaffirmed during the recent visit of ADB President Masatsugu Asakawa. The minister articulated the government’s commitment to a comprehensive reform agenda, focused on restoring macroeconomic stability and promoting sustainable growth. He highlighted key reform areas including digitization of the tax system to enhance revenue generation, energy sector improvements, and restructuring of state-owned enterprises (SOEs).

Minister Cheema highlighted the impacts of ongoing reforms such as stable currency, reduced inflation, and a strengthened fiscal position. He also emphasized Pakistan’s priorities for ADB’s support in critical sectors including climate action, infrastructure development, and social uplift. The visiting delegation reaffirmed its continuous support on government’s agenda to implement structural reforms, generate fiscal space and stabilize the economy. The visit of ADB’s Executive Directors reinforces the robust collaboration between ADB and Pakistan, aimed at achieving sustainable development goals and enhancing economic stability in the country.