Muhammad Aurangzeb, Federal Minister for Finance and Revenue, stated that Pakistan is moving towards sustainable growth. The Minister also identified population growth and climate change as two existential threats facing Pakistan.
Regarding fiscal health, the twin deficits shrank to approximately 2.6% at the close of June, down from 12.5% of GDP. Furthermore, the fiscal deficit reached a 22-year low, and primary surpluses have been achieved on the external side for three consecutive years.
The State Bank of Pakistan (SBP) FX reserves reached a high mark of $21.4 billion. Projections indicate that the current GDP growth stands at 4% for the current fiscal year.
At the investment fair, around 35 Public-Private Partnership projects aligned with the Sustainable Development Goals were showcased. Senator Sherry Rehman asserted that building sustainable cities represents a critical need of the hour.
She also noted that collaboration between the public and private sectors via public-private partnerships constitutes a successful model. Moreover, Senator Sherry Rehman claimed the private sector holds a pivotal role in bridging the gap in financial resources and capacity.
In the privatization sphere, a consortium of local investors submitted a cumulative bid of $1.2 million for the privatization process of PIA. Three Turkish companies expressed interest in the privatization process concerning Discos.
The Eurobond launch successfully attracted investors from Asian, Middle Eastern, blue-chip European, and U.S. sources. The PSX is rolling out an ESG index, and Green Panda bonds were also floated.
The Ministry also confirmed that the Bridge is being formalized under the international climate resilient COP arrangements. The Minister added that macro stability furnishes external and fiscal buffers to manage unforeseen situations.
