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Macroeconomic stability taking root in cash-strapped Pakistan's economy, says Finance Minister

05:19 PM Aug 22, 2024 | PTI |

Cash-strapped Pakistan’s Finance Minister Muhammad Aurangzeb on Thursday claimed that macroeconomic stability was taking root in the country’s economy.

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Aurangzeb made the remarks at the launching ceremony of Buna-Raast connectivity project in Islamabad. The project links Pakistan’s digital payment system, Raast, with Buna, which is established under the Arab Monetary Fund.

Aurangzeb said that a reduced current account deficit, stabilised currency, and improved foreign reserves were indicators of recovery, The Express Tribune newspaper reported.

He also noted that sovereign ratings had been upgraded, signalling reviving investor confidence.

The finance minister highlighted a surge in remittances, with USD 3 billion received in July alone, reflecting growing economic confidence among overseas Pakistanis. He added that the government’s commitment to infrastructural reforms is yielding positive results, though much remains to be done.

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Aurangzeb also discussed the Buna-Raast connectivity project, emphasising its role in digitalisation. He said the initiative would enhance transparency, particularly in remittances, taxation, and the power sector, ultimately putting Pakistan on a sustainable path aligned with FATF requirements.

According to the state-run Radio Pakistan, Prime Minister Shehbaz Sharif also addressed the ceremony, saying the Buna-Raast connectivity project would help to streamline remittances from the Arab world to Pakistan.

He also said the “initiative will further strengthen our historic relations with the Arab World in a modern digital way” and also facilitate Pakistanis in the Arab world to quickly send their money back home.

The Prime Minister also said that he would soon announce a five-year homegrown economic program for which discussions have been held with stakeholders on it over the last many months.

He said the program will envisage measures to uplift the economy and different sectors including agriculture and IT.

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