Reduction in inflation to spur economic growth: Aurangzeb

Federal Minister for Finance Muhammad Aurangzeb has expressed the confidence that the reduction in inflation will take the country from stabilization to growth path, reported 24NewsHD TV channel.

Addressing the launching ceremony of Pakistan Economy Dashboard in Islamabad on Wednesday, Aurangzeb said decline in inflation has surpassed all expectations, hoping it will continue to buttress the economy.

The finance minister emphasized the need for structural reforms to ensure permanence in macroeconomic stability.

As regards the Economy Dashboard, he said this will promote transparency and a fact-based approach. He expressed confidence that it will significantly enhance the economic landscape and improve the quality of discussions with stakeholders.

Aurangzeb called for “leveraging” Pakistan’s improving economic position to achieve lasting macroeconomic stability. “On the economic front we are in a good place,” he said, adding “But it is extremely critical that we leverage this position to do what we need to do in terms of bringing permanence to that macroeconomic stability.”

The minister said the latest CPI inflation figures have “surpassed all expectations”. “On the back of these numbers, I think it is going to continue to buttress the economy and take us from stabilization to a growth path.”

Aurangzeb said that the government last week rejected all bids, which was “a symbolic and important move”.

“This shows that the government is in no desperation to borrow, when we borrow it will be on our terms. For the banking sector, the message is very loud and clear: they need to start lending to the private sector.”

Stressing on leveraging macroeconomic stability, Aurangzeb said that the authorities need to ensure that “we continue with structural reforms”. “It is a defining moment for the country that we go with full rigour and vigour in terms of these structural reforms,” he said.

Aurangzeb maintained that the only way the current International Monetary Fund (IMF) programme will be the last is if we execute structural reforms.

Addressing the attendees, Aurangzeb said that Pakistan Economy Dashboard establishment will help improve transparency.