Karachi: Federal Minister for Finance, Mohammad Aurangzeb, accuses the middlemen of their failure to decrease prices of important food items in markets.
He added that prices of chicken and pulses still stand high because of the actions of them, even though important economic accomplishments continue to happen.
The current account has turned surplus after ten years, funds have elevated by 35%, and steps are being taken to ensure long-term economic sustainability.
While addressing the Economic Coordination Committee (ECC) meeting earlier today at the Ministry of Finance, Aurangzeb promoted the current success in the economic sector.
He stated that funds have escalated by 35%, reaching over $35 billion, which is a positive trend in the export sector. Inflation has dropped to its lowest level in six and a half years, and the State Bank has reduced the policy rate for the fifth time in succession.
The finance minister emphasized that the reduction of the policy rate to 13% is very important for the economy, adding a boost to confidence within the business community.
He further added that the priority is now set on obtaining maximum growth along with economic stability, with a 5% increase in cement sales as well.
He also mentioned that inflation had been talked about in the previous ECC meeting, and the first motive of this session will focus on reducing prices. Aurangzeb was optimistic that the journey of economic improvement would continue.
In an answer to questions about why the common man is not able to feel the impact of economic improvement, Aurangzeb explained that the prices of chicken and pulses have not lessened due to the salesmen.
Despite a global reduction in these prices, the role of middlemen in Pakistan stopped their reduction. He guaranteed that the government would continue to look after the situation.
At the Monetary Committee meeting, the Governor of the State Bank were confident that the funds would exceed $35 billion by the end of the current fiscal year, compared to $30.2 billion in the last year.
Aurangzeb also mentioned that the funds through Roshan Digital Accounts had exceeded $9 billion, demonstrating a 31% year-on-year increase compared to the fiscal year before. He further gave positive news from the technology sector, with a 25% increase in technology exports.
Textile exports are also rising, and foreign exchange reserves have improved. The country, which had only two weeks of import cover before, now has 2.6 months of reserves.
Aurangzeb was hopeful that by the end of the year, reserves would cover three months of imports, which would be important for Pakistan’s credit rating.
The finance minister also added that inflation also improved. While the inflation rate was around 5% six and a half years ago, it stood at 4.9% in November.
The policy rate has now decreased by 13%, and the KIBOR (Karachi Interbank Offered Rate) is now below 12%, reducing borrowing costs for industries. He concluded that the decrease in inflation would benefit the common man.
