Economy showing signs of recovery: Finance Minister

• Finance Minister Dr Shamshad Akhtar said the economy was showing signs of recovery.
• She said the government was expecting $2 bn in assistance on a fast-track basis.
• She said Rs80 billion has been allocated to improve remittances.

ISLAMABAD: Caretaker Federal Minister for Finance, Revenue and Economic Affairs Dr Shamshad Akhtar said that the country’s economy was showing signs of recovery owing to efforts made by the interim government.

“The macroeconomic indicators, if you view them, you can find some betterment. There are some signs of economic recovery. Even if it is just starting,” the finance minister said while addressing a press conference.

While deliberating upon the indicators showing positive development, the finance minister said the Consumer Price Index (CPI) has shortly declined from over 38 percent in May to 27.2 percent now, adding this was an important indicator to show betterment.

The minister said the caretaker setup had inherited several challenges and was trying to deal with them, adding the government’s strategy was to prudently manage the challenges, make efforts to control expenditure and enhance revenues, which would help improve the situation

She said the country had come out of some difficulties and the situation would improve further. She said the productive sectors witnessed betterment including agriculture which is expected to yield good output in both minor and major crops that would have a positive impact on economic growth

She said the industrial sector was also showing improvement, citing growth in the cement industry, adding that as soon as the activity picks up gradually the industry would also grow. Talking about the services sector, the minister said it is a very vibrant sector.

In addition, she said, the State Bank of Pakistan (SBP) had kept the interest rate stagnant which would also help improve the situation by reducing cost of borrowing by industries and help its revival.

She said the government had also talked to donors, expressing the hope that in addition to the normal flows from them, funding in some areas would be fast-tracked.

She said the government was expecting around $2 billion in assistance on a fast-track basis.  The Asian Development Bank (ADB) is expected to keep its funding under Revitalizing Informal Settlements and their Environments (RISE) on fast track, the minister added.

She said the government was focusing on reforms in those sectors that are beneficial for people and help build the confidence of investors to attract Foreign Direct Investment (FDI). She said the government was working on different initiatives to improve the FDI and ensure self-sustaining growth.

For remittance, she said, Rs80 billion has been allocated for initiatives to improve remittances through formal channels, adding that Rs20 billion out of this amount has been released to banks for this purpose.

She said the foreign exchange reserves position is also stable adding that Exchange Companies Reform and anti-smuggling operations stabilized the rupee. “This stability came without any bank intervention,” she said.

The minister said the export-import bank (EXIM) was also being operationalized. She said there were many other initiatives that showed the government was making efforts to bring about positive change.

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