Aurangzeb hints at further cut in interest rate, power traffi

RAWALPINDI: Federal Minister for Finance and Revenue, Muhammad Aurangzeb has hinted at the possibility of further reducing interest rates and lowering electricity prices.

Addressing the business community on “Independence Day Celebrations”, at Rawalpindi Chamber of Commerce and Industry (RCCI), the minister he noted that consumer confidence is at its peak, economic growth is at record levels, and privatization of state-owned enterprises will accelerate this year.

He highlighted record-high foreign exchange reserves, an improved domestic business climate, and called for unity to move the country forward.

The Minister extended advance Independence Day greetings, emphasizing that faith, national unity, security, and economic stability are inseparable.

“Over the past 18 months, significant steps have been taken to boost revenue, stabilize the rupee, and reduce the policy rate”, he said adding agricultural loans have surpassed Rs. 2.5 trillion, debt servicing reached Rs.1.0 trillion last year, and debt has increased by 41% with private sector lending at 38%.

He highlighted strong stock market performance driven by new investors, ongoing rightsizing in 45 ministries and over 400 departments, pension reforms, and initiatives to lower electricity prices.

“The Prime Minister is personally overseeing FBR transformation meetings, ensuring no extra tax burden on salaried individuals, while working to close loopholes and broaden the tax base”, he added.

The minister also shared that international financial institutions and rating agencies have acknowledged Pakistan’s reforms.

“A tariff agreement with the U.S. has been reached, discussions with the IMF are underway, and after 2.5 years, USD 1.0 billion in Middle Eastern investment has been secured”, he said

The Finance Minister expressed optimism for the future, stating that the economy has stabilized, interest rates have been significantly reduced and there is room for further cuts with another reduction expected soon.

RCCI marked Pakistan’s 78th Independence Day with a flag hoisting ceremony and “Marka e Haq” celebrations. The event also featured the cutting of an Independence Day cake.