ISLAMABAD: Finance Minister Muhammad Aurangzeb has announced that the country has seen a “sharper than expected decline in inflation”, with the economy on track to improve. Inaugurating Pakistan’s economic panel on Wednesday, the finance czar highlighted key economic progress and stressed the need for structural reforms to ensure sustainable stability. In his speech, the minister noted that inflation has decreased more than the government had anticipated. “The rate of inflation is coming down faster than we expected, which is a positive sign for our economy,” he said. However, he emphasized that continued efforts are needed to maintain this trajectory. The minister also pointed out that the number of tax subjects has increased and the government aims to further increase the ratio of taxes to GDP. “We must focus on increasing our tax base to achieve long-term economic stability,” he added. Aurangzeb praised Pakistan’s banking sector and described its current trajectory as one of significant improvement. He praised the sector for providing more support to investors and expressed confidence that this trend would continue. “The banking sector facilitates investment and creates additional opportunities for growth,” the minister said. He emphasized that improvements in the banking sector will improve access to financial services for ordinary citizens and help small and medium enterprises (SMEs) get much-needed financial support. He believes it will play a key role in boosting the overall economy. Reforms necessary for sustainable economic growth The finance minister has made it clear that Pakistan’s ongoing program with the International Monetary Fund (IMF) will be the last if the government successfully implements structural reforms. “The only way to achieve sustainable economic stability is through fundamental reforms,” Aurangzeb stressed. He outlined the need for significant changes to ensure that Pakistan’s economic growth remains on track. He further emphasized the need to improve the tax-to-GDP ratio and use the country’s current economic position to promote further stability. “Our economy is moving in the right direction and we must take advantage of this momentum by implementing the necessary reforms,” he added.
