Interim Finance Minister Shamshad Akhtar shared that Pakistan’s economy is expected to grow by 2-2.5% in the current fiscal year 2023-24. She spoke at the ‘IPO Summit 2024’ organized by the Pakistan Stock Exchange (PSX) and highlighted the country’s progress in macro-economic stability, exchange rates, and financial stability despite challenges.
Akhtar predicted positive growth, with agriculture anticipated to grow by 5.6% and industry by 2.5% this fiscal year. She emphasized the importance of reducing high-interest rates for the capital markets to flourish, with the State Bank of Pakistan (SBP) considering lowering rates as inflation decreases.
The caretaker minister recognized the PSX’s upward trend, with a 55% return in 2023, and the benchmark KSE 100 Index reaching over 62,450 points in December 2023.
Regarding foreign direct investment, Akhtar mentioned that groundwork has been laid for attracting investments. On the external front, she reported that foreign exchange reserves stand at $9.1 billion, boosted by the IMF tranche and multilateral flows.
Recently, Pakistan received a $700 million loan tranche from the IMF under a nine-month Stand-By Arrangement (SBA). This disbursement followed the IMF Executive Board’s approval of the first review of Pakistan’s economic reform program, bringing the total disbursements under the arrangement to about $1.9 billion.
The IMF’s decision reflects Pakistan’s commitment to implementing key reforms, as agreed in a staff-level agreement on November 15, 2023.
