Pakistan has made significant progress in controlling inflation, which dropped to 3% this month, according to Finance Minister Mohammad Aurangzeb. He attributed this improvement to comprehensive economic reforms, which are helping to stabilize the country’s financial situation.
In an interview with Nikkei Asia, Aurangzeb highlighted the transformation Pakistan is undergoing. He recalled that inflation soared to 38% in May 2023, but consistent efforts to improve the economy have brought positive results. The government remains committed to continuing these reforms under International Monetary Fund (IMF) guidelines. Aurangzeb also stated that Pakistan is determined to make this IMF program its last.
The finance minister explained that the country is working to boost exports, attract foreign investment, and reconnect with international financial markets. One of the key steps in this direction is Pakistan’s plan to enter China’s financial markets. Aurangzeb revealed that the government is preparing to issue Panda Bonds, denominated in Chinese yuan, by the end of the current fiscal year. These bonds are expected to strengthen financial ties with China and enhance Pakistan’s credit rating globally, with hopes of achieving a ‘B’ rating from major credit agencies.
Aurangzeb also discussed potential collaborations between Pakistani and Chinese companies, particularly joint stock listings in Hong Kong. He emphasized that these initiatives would open new avenues for economic growth and foster stronger business relationships with China.
He further highlighted the importance of the China-Pakistan Economic Corridor (CPEC), calling it a vital project for the country’s development and a flagship initiative of China’s Belt and Road Initiative. According to the finance minister, CPEC is not only boosting infrastructure development but also strengthening Pakistan-China relations.
To ensure smooth operations of ongoing projects, Aurangzeb assured that the government has prioritized the safety of Chinese nationals and all other foreigners working in Pakistan. Enhanced security measures have been implemented to protect their well-being and promote a conducive environment for foreign investments.
Pakistan’s economic reforms are shaping a more stable and promising future for the country. By focusing on financial stability, export growth, and international collaborations, Pakistan is paving the way for long-term economic success.
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