Pakistan Aims for 3.5% GDP Growth This Fiscal Year

Finance Minister muhammad Aurangzeb expressed optimism that Pakistan can achieve a GDP growth of approximately 3.5 percent during the current fiscal year, despite the recent floods.

Aurangzeb shared this projection during an interview on CGTN america‘s ‘One on One’ program, published on Tuesday. He discussed the challenges the recent floods pose to economic recovery.

He emphasized that climate change is an “existential issue for Pakistan,” stating, “We are living it day in and day out.”

Aurangzeb recalled past floods and their impact, noting, “We grew at 3pc GDP last year.We initially estimated over 4pc growth this year, but the flood situation will reduce that. However, I remain hopeful we can still reach close to 3.5pc this fiscal year.”

The finance minister also addressed efforts to restore Pakistan’s economy and the main challenges. He stated Pakistan has “consolidated gains on the macroeconomic stability front. Inflation is now in single digits, and the policy rate has been halved. Consequently, global rating agencies have upgraded us this year – Fitch, S&P, and recently Moody’s. This marks the first alignment between rating agencies in two and a half to three years.”

Regarding the International Monetary Fund (IMF), Aurangzeb highlighted the staff-level agreement reached earlier this month on loan programmes, which will unlock $1.2 billion upon approval from the fund’s board.

“We are grateful for the Fund’s continued trust and confidence in Pakistan’s commitment to structural reforms,” he concluded.