Ongoing IMF Talks Positive, Says Finance Minister Aurangzeb

Finance Minister Muhammad Aurangzeb has announced that Pakistan missed most macroeconomic targets for FY2023-24, but the agriculture sector significantly boosted GDP growth to 2.38%. Presenting the Economic Survey of Pakistan 2023-24 in Islamabad, Aurangzeb highlighted key economic indicators and challenges faced during the fiscal year.

The agriculture sector recorded its highest growth in 19 years at 6.25%. Key crops such as wheat, rice, and cotton saw a growth of 16.82%. Aurangzeb praised agriculture as the “saviour” of the economy, driving overall GDP growth.

Pakistan’s GDP grew by 2.38%, surpassing the target of 2%. The growth was primarily attributed to the robust performance of the agriculture sector. LSM growth was hampered by high interest rates and energy costs.

The sector struggled due to the challenging economic environment. Aurangzeb emphasized the importance of taxation over charity for national development. He called for broader participation in the tax system to fund essential services like schools, hospitals, and universities.

The finance minister assured that Pakistan is entering the new fiscal year with a stronger external financial position.

Ongoing discussions with the International Monetary Fund (IMF) are positive, and the government expects to manage external financing effectively. Pakistan’s foreign exchange reserves have improved, providing more than two months of import cover.

The country faced a challenging start with a 29% depreciation of the Pakistani rupee and low foreign exchange reserves. The government, under Prime Minister Shehbaz Sharif, has undertaken reforms to stabilize the economy. Aurangzeb reiterated the necessity of the IMF program, describing it as a crucial step for Pakistan’s economic stability.

The government plans to continue policies that foster growth and stability, leveraging the success in agriculture. Aurangzeb expressed confidence in managing repayments and maintaining a strong financial position in the upcoming fiscal year.

The Economic Survey of Pakistan 2023-24 underscores the critical role of the agriculture sector in driving economic growth amidst broader macroeconomic challenges. As the country prepares for the new fiscal year, the government remains focused on sustaining growth and achieving financial stability.