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Business Recorder
3 days ago
- Business
- Business Recorder
Team coming by Sept-end: $1bn 3rd IMF tranche anticipated: Aurangzeb
ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Wednesday that an International Monetary Fund (IMF) delegation will visit Pakistan at the end of September, with the country expecting to receive the third tranche of $1 billion upon completion of the next review. This he stated during an informal talk with media on the occasion of 'Independence Day Celebrations,' organised by Rawalpindi Chamber of Commerce and Industry (RCCI) here on Wednesday. Preparations for the upcoming economic review were complete, he added. IMF projects Pakistan's GDP growth at 3.6% for FY26, below govt target of 4.2% Addressing the business community, Aurangzeb said that there was scope for further cut to policy rate during the ongoing calendar year, pointing to a decline in average and core inflation. 'At present, the policy rate is at 11 percent. I am always very careful that the policy rate and the market-based exchange rate are very much the purview of the central bank, the State Bank of Pakistan, and the Monetary Policy Committee,' Aurangzeb added. 'Having said that, my own view, and I am giving my personal view here, is that given the current inflation, whether it is the average inflation or the core inflation, I do think there is room to do more in terms of the policy rate, and I am very hopeful that during the course of this calendar year we will see movement in the policy rate,' he added. The finance minister said that national security and economic stability are interdependent. 'Over the past 18 months, significant steps have been taken to boost revenue, stabilise the rupee, and reduce the policy rate,' he said, adding agricultural loans have surpassed Rs2.5 trillion, debt servicing reached Rs1.0 trillion last year. The minister said the government had finalised economic growth-focused agreements with the IMF, reached a favourable tariff deal with the United States, and was working on key accords with China. Panda bonds would be issued by year-end, and a benchmark for Sukuk bonds had been set, the finance minister added. 'We are heading in the right direction,' said the minister, adding that the government was committed to providing a better environment for the business community and encouraging the private sector to lead the economy. 'Our economic and financial achievements are being recognised globally. There is hope for further improvement in the coming days.' The minister said company registrations had risen by 250,000, loans to the private sector were up 38 percent, and the government had paid one trillion rupees in debt servicing over the past year. He also pointed to reduced electricity tariffs, expected improvements in energy costs, and ongoing reforms in tax administration. He assured that taxation reforms would not burden the salaried class and that the prime minister was personally overseeing FBR's transformation. Monthly meetings with chambers would be held to address business concerns. The finance minister said that once fiscal discipline is achieved, the government's borrowing requirement will decrease, and bank and other economic institutions will reach out to the private sector. He added that the government had reduced its debt servicing by Rs1tr in the past year. 'God-willing, our debt servicing will go down by more than 1tr this year as well.' Aurangzeb said; 'We are getting our house in order, which is the federal government. And therefore, it is important that you also take whatever efforts you are making towards the private sector.' 'On the financing costs, we have moved in the right direction. On the energy side, we are beginning to move in the right direction. 'On the taxation side, the fiscal space we had and whatever we could do in this budget, I am very clear in terms of the direction of travel. We need to bring taxation to a regional competitive level,' he added, stressing that expanding the tax nets and closing the loopholes were necessary for that. Aurangzeb affirmed that the government, under Prime Minister Shehbaz Sharif's leadership, is prioritising a business-friendly environment. He said that consumer confidence is at its peak, economic growth is at record levels, and privatisation of state-owned enterprises will accelerate this year. Aurangzeb highlighted there had been a 'record increase' of 65,000 new investors who have come into the PSX over the last year. Company registrations' annual levels had also gone above 250,000, the minister said, terming both developments as a 'big structural change.' Talking about the structural reforms, the minister pointed out the ongoing tariff reforms, which he said were taking place for the first time in Pakistan's history. Aurangzeb also pledged further reduction in energy costs due to the savings from the revised agreements with 27 independent power producers earlier this year. He highlighted that the reforms aim to explore how to reduce the costs of raw materials and intermediate products so that Pakistan could become an export-led economy. Aurangzeb said the federal government had begun a right-sizing process for 45 ministries and departments, and the privatisation of state-owned enterprises would accelerate. Pointing out that international financial institutions had hailed Pakistan's economic reforms, and that Fitch and S&P Global Ratings had upgraded the country's credit ratings this year, he added. RCCI marked Pakistan's 78th Independence Day with a flag hoisting ceremony and 'Marka e Haq' celebrations. Federal Minister for Finance, Muhammad Aurangzeb, attended as the chief guest. The event also featured the cutting of an Independence Day cake. RCCI President Usman Shaukat lauded Pakistan's journey of resilience, sacrifice, and hope over the past 78 years. Highlighting recent improvements in economic indicators, he urged the government to further lower interest rates to single digits, reduce electricity and gas tariffs, and cut tax rates to stimulate business activity and job creation. Copyright Business Recorder, 2025
Business Recorder
4 days ago
- Business
- Business Recorder
Finance Minister Aurangzeb optimistic on policy rate cut
Finance Minister Muhammad Aurangzeb signalled potential easing of Pakistan's policy rate later this year, noting slowing inflation and stable economic indicators, while addressing the 78th Independence Day of Pakistan and the Marka-e-Haque celebrations at the Rawalpindi Chamber of Commerce & Industry (RCCI) on Wednesday. 'I am always careful that the policy rate and the market-based exchange rate are very much under the purview of the State Bank of Pakistan (SBP) and the Monetary Policy Committee (MPC). Having said that, citing core and average inflation, my personal view is that I do think there is room to do more in terms of the policy rate. 'I am very hopeful that during this calendar year, we will see movement on the policy rate going south,' he said. Last month, the MPC of the central bank decided to keep the policy rate unchanged at 11%. The decision contradicted market expectations, which had anticipated a rate cut of around 50 to 100 basis points (bps). The committee, back then, noted that inflation in June 2025 decelerated to 3.2% year-on-year, led mainly by lower food prices, whereas core inflation also declined slightly. During his address, the finance minister said that the international financial organisations have lauded the government's economic reform agenda. 'S&P and Fitch have already upgraded us, and I am very hopeful that soon the third agency [Moody's] will also upgrade us,' he said. Pakistan govt alarmed by over Rs6trn losses in state-owned enterprises Shifting to trade development, Aurangzeb said the recently announced deal with the United States 'provides a fantastic opportunity to capitalise on'. The government believes that Pakistan's exporters are poised to gain a significant competitive edge in the US market after the government successfully negotiated a reduction in reciprocal tariffs from 29% to 19%. This marks the lowest tariff rate in the region and presents a major opportunity to boost Pakistan's exports to the US. Meanwhile, the finance minister elaborated on his government's economic performance, saying that in recent years the size of the economy and overall income have increased, there is stability in the financial sector, a record reduction in fiscal deficit and inflation, the current account is in surplus, and a record rise in remittances is registered. 'National security and economic stability are essential for each other, and it is encouraging that over the past one and a half years, we have made strong progress on the economic front,' said Aurangzeb. He said that last year the government reduced its debt servicing cost by Rs1 trillion. It intends to repeat this feat in the current fiscal year as well, he said. He said that the transformation in the Federal Board of Revenue (FBR) is underway. 'I am very clear that taxation needs to be brought to a regionally competitive level. We cannot further burden the salaried class and the manufacturing sector,' Aurangzeb maintained.
Express Tribune
15-04-2025
- Business
- Express Tribune
Lt Gen Nigar Johar appointed RCCI ambassador for women's empowerment
Listen to article Lt Gen (Retd) Nigar Johar Khan has been appointed as the brand ambassador for women empowerment and related initiatives by the Rawalpindi Chamber of Commerce and Industry (RCCI). The announcement came during an event titled SHE Leads – A Tribute to Women, held at RCCI's Chamber House on Monday. Nigar Johar, the first and only woman in Pakistan to achieve the rank of three-star general, served as the chief guest. Speaking at the ceremony, RCCI President Usman Shaukat praised Johar's career as one defined by courage and barrier-breaking achievements. 'She stands as a beacon of hope and aspiration,' Usman Shaukat said. Group Leader Sohail Altaf reaffirmed RCCI's support for inclusive development, calling events like SHE Leads a way to recognise women's role in national progress. In her keynote address, Nigar Johar lauded RCCI's proactive stance on women's inclusion. 'Creating spaces for women to lead, grow, and shape the future is essential,' she said. She also voiced support for RCCI's planned solidarity walk for Palestine, which will be held with participation from the Palestinian ambassador. Born in Swabi, Khyber-Pakhtunkhwa, Nigar Johar joined the Army Medical College in 1981 and graduated in 1985. She later rose to become colonel commandant of the Army Medical Corps, making history as the Pakistan Army's highest-ranking female officer.
Express Tribune
06-03-2025
- Business
- Express Tribune
Minister stresses continuation of policies
Planning Minister Ahsan Iqbal lamented on Wednesday frequent disruptions of the economic policies of the country, stressing that the benefits of the newly-achieved stability would trickle down to the people in a year or two, provided that the current government's policies continued. Addressing a ceremony at the Rawalpindi Chamber of Commerce and Industry (RCCI), Iqbal said that it was the fourth time Pakistan's economy was taking off but more important was that "this flight must be made sustainable". The minister pointed to positive economic indicators, saying that in the one year of the government interest rate had been brought from 23 to 12%, stock market had rose from 40,000 points to well above 100,000 points, while Investors' confidence gradually increased in in Pakistan. In April 2022, when the Pakistan Muslim League-Nawaz (PML-N)-led Pakistan Democratic Movement (PDM) coalition government took over, the foundations of the Pakistani economy were shaken, as the country was on the verge of default but the government pulled the country out of that crisis. "We took tough decisions by putting our politics at stake. We fulfilled the conditions the [previous Pakistan Tehreek-e-Insaf] PTI government had agreed with the IMF [International Monetary Fund] and [because of which] our politics was affected," he told the event. Commenting on the disruption in the government policies, he said that Pakistan first took off in the 1960s. Then in in 1991, Pakistan took the second flight when Nawaz Sharif became the prime minister for the first time. "Had Nawaz Sharif's reforms been continued, we would have been ahead of Malaysia, but because of political instability, there was no continuity of policies. In 2013, we gave the Vision-2025, which if continued, would have placed Pakistan among world's top economies by 2030," the minister stated.
