Cautious Optimism: Pakistan’s Economy Set to Grow 2-2.5% in Fiscal Year 2023-24

Cautious Optimism: Pakistan's Economy Set to Grow 2-2.5% in Fiscal Year 2023-24

Sabiha Rajpoot | January 20, 2024 | 10:51 PM IST | Pakistan News, World | Follow on Google News

Cautious Optimism: Pakistan’s Economy Set to Grow 2-2.5% in Fiscal Year 2023-24

Cautious Optimism: Pakistan’s Economy Set to Grow 2-2.5% in Fiscal Year 2023-24

CARETAKER FINANCE MINISTER SHAMSHAD AKHTAR recently addressed the ‘IPO Summit 2024’, organized by the Pakistan Stock Exchange (PSX), shedding light on Pakistan’s economic outlook for the fiscal year 2023-24. Despite challenges, Akhtar expressed optimism, projecting a growth rate of 2-2.5% for the country’s economy.

Positive Trajectory: Economic Growth and Sectoral Projections
Shamshad Akhtar highlighted the significant strides Pakistan has made in terms of macro-economic, exchange rate, and financial stability. Anticipating a positive rebound, she projected a growth rate of 2-2.5%, with agriculture expected to grow by 5.6% and industry by 2.5% in the current fiscal year. These promising sectoral projections underscore the resilience of Pakistan’s economy amid challenges.

Capital Markets and Foreign Investment: A Foundation for Progress
Akhtar emphasized the importance of maintaining a favorable interest rate regime for the thriving of capital markets. Acknowledging the role of the State Bank of Pakistan (SBP), she noted the conscious effort to lower interest rates, provided inflation remains in check. Additionally, Akhtar highlighted the groundwork laid for attracting foreign direct investment, indicating a positive outlook for Pakistan’s economic landscape.

The caretaker minister also commended the upward trend at PSX, citing a remarkable 55% return in 2023 and the KSE 100 Index reaching over 62,450 points in December 2023. On the external front, Akhtar reported that foreign exchange reserves reached $9.1 billion, boosted by the International Monetary Fund (IMF) tranche and multilateral flows.

In a significant development, Pakistan received a $700 million loan tranche from the IMF under the nine-month Stand-By Arrangement (SBA). This positive outcome followed the IMF Executive Board’s completion of the first review of Pakistan’s economic reform program, showcasing the nation’s commitment to implementing key reforms. With around $1.9 billion disbursed under the arrangement, Pakistan’s economic trajectory seems cautiously optimistic, supported by international financial institutions.

Sabiha Rajpoot

Sabiha Rajpoot, a young journalist, having BA- Journalism degree, writes on different scenarios. Sabiha is also a doctor degree at DHMS.