'Inflation drop was more than we expected': FinMin Aurangzeb

Finance czar praised banking sector for offering support to investors; expressed confidence trend would continue

Finance Minister Muhammad Aurangzeb announced that the country has seen a "sharper-than-expected drop in inflation", with the economy moving towards improvement.

Speaking at the launch of the Pakistan Economic Dashboard on Wednesday, the finance czar highlighted key economic progress and stressed the need for structural reforms to ensure sustainable stability.

During his address, the minister noted that inflation has decreased more than the government had anticipated.

"The inflation rate is falling faster than we expected, which is a positive sign for our economy," he said.

However, he emphasised that continued efforts are needed to maintain this trajectory.

The minister also pointed out that tax filer numbers have increased, and the government aims to further raise the tax-to-GDP ratio.

"We need to focus on increasing our tax base to achieve long-term economic stability," he added.

Aurangzeb spoke highly of Pakistan’s banking sector, describing its current trajectory as one of significant improvement.

He praised the sector for offering greater support to investors and expressed confidence that this trend would continue.

"The banking sector is facilitating investment and creating more opportunities for growth," the minister stated.

He highlighted that improvements in the banking sector would enhance access to financial services for ordinary citizens and help small and medium-sized enterprises (SMEs) gain much-needed financial support.

This, he believes, will play a key role in boosting the overall economy.

Reforms essential for sustainable economic growth

The finance minister made it clear that Pakistan’s ongoing programme with the International Monetary Fund (IMF) would be the last, provided the government successfully implements structural reforms.

"The only way to achieve sustainable economic stability is through fundamental reforms," Aurangzeb stressed. He outlined the need for significant changes to ensure Pakistan's economic growth remains on track.

He further emphasised the need to improve the tax-to-GDP ratio and utilise the country's current economic position to drive further stability.

"Our economy is heading in the right direction, and we must capitalise on this momentum by implementing necessary reforms," he added.