'Economy moving from stability to growth'

PM's coordinator credits reforms for PSX surge, export rise, improved investor confidence

ISLAMABAD:

Rana Ihsan Afzal Khan, Coordinator to the Prime Minister on Commerce and Industry, stated on Thursday that Pakistan's economy has shown steady progress, thanks to the prudent policies of the current government. This marks a shift from economic stability to a focus on sustained growth.

Addressing a news conference, Khan highlighted the Pakistan Stock Exchange (PSX) 100 Index's gain of over 1,500 points, pushing it to 81,900, which he hailed as a "superb performance" and a "big achievement." He noted that this rise reflects growing investor confidence in the government's policies and market-based sentiments.

Khan expressed confidence that the government's agreement with the International Monetary Fund (IMF) would be finalised by September 25, ensuring continued economic growth. He also emphasised Pakistan's improved credit ratings, as acknowledged by agencies like Fitch and Moody's, indicating a positive outlook on the country's debt and external challenges.

He further shared that exports in key sectors, including textiles, clothing, and IT services, have increased significantly, with overall exports rising by 7.2% in July and August. Remittances surged by 44%, reaching $5.9 billion, while the current account deficit narrowed to just $0.2 billion.

The coordinator also highlighted the reduced inflation rate of 9.6%, a decline in food inflation to 4% from 38%, and a gradual cut in the policy rate, which now stood at 17.5%.

Large Scale Manufacturing (LSM) sectors also showed positive growth, increasing by 2.38% year-on-year. Additionally, inflation dropped to 9.6%, with food inflation down to 4%.

He added that the privatisation of Pakistan International Airlines (PIA) is in its final phase, and the government remains committed to downsizing inefficient departments, including the recent abolition of the Public Works Department (PWD).