Pakistan’s Macroeconomic Stability Recognized Globally

Minister for Finance, Muhammad Aurangzeb, hailed the recent reports by Fitch and the State Bank of Pakistan as a testament to Pakistan’s macroeconomic stability.

A Step in the Right Direction

Aurangzeb acknowledged the upgrade of Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ by Fitch, citing the country’s staff-level agreement with the IMF.

Economic Stability Agenda

The Minister emphasized the government’s commitment to maintaining economic stability, led by Prime Minister Shehbaz Sharif and his economic team.

Private Sector’s Role

Aurangzeb urged the private sector to contribute to Pakistan’s growth, particularly in addressing the currency mismatch issue.

Improving Tax and Recovery

He stressed the need to enhance tax collection and recovery to ensure sustainable economic growth.

Fitch’s Upgrade

Fitch’s upgrade reflects the increased certainty of external funding, thanks to Pakistan’s agreement with the IMF.

Challenges Ahead

However, Fitch warned that Pakistan’s large funding needs make it vulnerable to reform implementation and funding risks.

Conclusion

Pakistan’s macroeconomic stability has gained international recognition. The government remains committed to maintaining this stability, and the private sector’s involvement is crucial. Addressing challenges in tax collection and recovery will be vital to sustaining growth.

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