SandP Global delegation applauds Pakistan’s economic reforms

Finance Minister Muhammad Aurangzeb held a meeting with the delegation of Standard and Poor's Global Rating Agency in Islamabad today. Welcoming the delegation, the Finance Minister gave an update on Pakistan's current economic situation. He highlighted the successful completion of the nine-month Stand By Arrangement with the IMF and the improving macroeconomic indicators of Pakistan. The Minister highlighted some of the indicators including building up of foreign exchange reserves to 9.4 billion dollars, robust performance of the stock exchange, declining trend of inflation rates with CPI inflation clocking in at 12.6 percent last month, and increase in foreign remittances by 7.7 percent as compared to the previous year. He emphasized the Government's efforts to broaden the tax base as tax collection during the current fiscal year increased by 30 percent as compared to the outgoing financial year and also to further improve the tax-to-GDP ratio. The ongoing reforms in the energy sector, and State-Owned En terprises including privatization were discussed. Furthermore, the Federal Minister underscored the confidence shown by multilateral institutions through their financing for various projects in Pakistan. Muhammad Aurangzeb also informed the delegation that Pakistan is currently holding talks with IMF on a new medium term program to support Pakistan's economic reform agenda. The delegation, led by Directors of Sovereign and International Public Finance Ratings Mr. Yee Farn Phua and Mr. Andrew David Wood from SandP Global appreciated the fiscal measures adopted by the Government of Pakistan and acknowledged the improvement in economic indicators. Source: Radio Pakistan