Interest Rates Significantly Reduced, Further Cuts Possible : Finance Minister
Finance Minister Muhammad Aurangzeb has said that there has been a significant reduction in interest rates, I think there is scope for further reduction in interest rates.
While holding a news conference in Islamabad, he said that economic stability has come to the country, economic stability is very important for economic development, there has been a lot of improvement on the external front, remittances are estimated to exceed $36 billion this year.
The Finance Minister said that exports are also increasing, by the end of June the country’s foreign exchange reserves will reach $13 billion, at present there are no problems in opening LCs and sending profits abroad to companies, there has been a record reduction in inflation on the internal front.
Muhammad Aurangzeb said that the reduction in inflation should be passed on to the people, the Economic Coordination Committee of the Cabinet is taking steps to reduce inflation, the ECC is keeping a special eye on inflation, the ECC has taken new steps to monitor inflation.
He said that there has been a significant reduction in interest rates, I think there is scope for further reduction in interest rates, PWC and Overseas Chamber have reported an increase in confidence, investor confidence has been restored, local investors are also investing, investment in the stock market has increased.
He said that 870 billion rupees were purchased on Eid-ul-Fitr, compared to 720 billion rupees on Eid-ul-Fitr last fiscal year,
Cement production increased by 14 percent in the first half of the year, car sales increased by 40 percent and motorcycle sales by 30 percent in the first half of the year.
The Finance Minister said that a staff level agreement has been reached with the IMF, we have achieved the IMF’s structural benchmarks,
This time, steps have been taken for the national fiscal agreement and agricultural income tax collection, this is the first time that Pakistan has achieved the structural benchmarks.
Muhammad Aurangzeb said that for the first time, the provinces have also taken steps to achieve the targets. It is hoped that the IMF Executive Board will soon approve the second tranche of one billion dollars.
An agreement has also been reached with the IMF on climate change. We will not get one billion dollars all at once, but will get it in stages.
