Islamabad: Finance Minister Muhammad Aurangzeb unveiled the Economic Survey of Pakistan 2023-24, a pre-budget document containing details of the socio-economic performance of the last fiscal year.
“Pakistan’s rupee has depreciated by 29% and foreign exchange reserves have reduced to two weeks of imports in the fiscal year 2022-23,” the finance minister said at the start of a press conference.
The finance minister said the country has embarked on a reform journey under the leadership of Prime Minister Shehbaz.
“I was in the private sector before I joined the finance ministry, but at that time it was clear that Pakistan had to go to HPG because we had no choice and that’s why it was called the lender of last resort.”
“If there were Godforbids, if we weren’t at HPG, we wouldn’t be discussing the goals here, and we’re in a difficult position.”
Greater manufacturing growth was hampered by the impact of interest rates and the energy equation, the minister said, adding that agriculture had been a “savior” supported by many crops.
“Agriculture will be a big part of growth as we move forward,” Aurangzeb said.
The poll is ahead of the federal budget for the 2024-25 fiscal year, which will be presented on June 12 (Wednesday).
The Pakistan Muslim League-Nawaz (PML-N)-led coalition government is expected to set ambitious fiscal targets in the 2024-2025 budget, stepping up its bid for a new bailout deal with the International Monetary Fund (IMF) said the analyst.
Addressing financial constraints and reduced development funding in the HPG program, the APCC proposed $1.221 billion in federal development programs for the 2024-25 fiscal year.
This will be the first budget presented by the sitting government.
As Pakistan seeks to secure a default-proof credit program for its slowing economy, global lenders are asking the country to increase provincial taxes, particularly on agriculture, sales tax on services and property tax.
Pakistan is in talks with HPG to borrow between $6 billion and $8 billion to avoid default for the region’s slowest-growing economy.
