Finance Minister Muhammad Aurangzeb on Friday revealed that investors are reluctant to help Pakistan by depositing funds or roll over debt.
Addressing a literature festival in Islamabad, he urged the private sector to spearhead economic growth and eliminate corrupt practices like speed money.
Aurangzeb acknowledged that no lenders were willing to extend new deposits or debt rollovers which has forced Pakistan to seek investment from partners like China, Saudi Arabia, and the UAE.
Aurangzeb detailed the government’s efforts to stabilize the economy via currency and foreign reserve stability, inflation reduction, and a recent $1 billion debt repayment. He projected that by the March-June quarter, foreign reserves would cover three months of imports. Energy costs were also improving, though he stressed the need for deeper reforms, including the privatization of state-owned enterprises (SOEs) and critical tax and structural reforms given Pakistan’s unsustainable 10 percent tax-to-GDP ratio.
The finance minister emphasized that the private sector must lead economic initiatives, especially in the business-to-business phase of the China-Pakistan Economic Corridor (CPEC).
The senator lamented over price inconsistencies, pointing out that while global chicken prices had fallen by 14 percent, they had risen 15 percent domestically. He also called for complete digitalization of government processes to prevent revenue leakage.
Aurangzeb also raised a red flag over Pakistan’s rapid population growth, warning that if the population reaches 400-450 million, the country’s resources will face immense strain.
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Every country is reluctant to rollover and invest without solid security because the same minister played the inflation figures and managing the exchange rate from months.