Results for: Foreign Exchange Reserves

Amidst Pakistan’s dire economic situation, Finance Minister Muhammad Aurangzeb will approach parliament for approval to enhance the government’s tax revenue generation. He emphasized the need for structural reforms, as Pakistan’s tax-to-GDP ratio remains low at 9%. The government has formally requested an IMF bailout package ranging from $6 to $8 billion, with details to be finalized in May 2024. Despite facing a dwindling $3.4 billion in foreign exchange reserves when the current government took office, Pakistan has since increased its reserves to $8 billion and anticipates an additional $1.1 billion from the IMF. Inflation has also decreased to 20.7%, according to the State Bank of Pakistan, and is projected to decline further to 5-7%. The country’s GDP growth is estimated to reach 2.6% in FY2024, and foreign exchange reserves are expected to hit $10 billion by June.

Pakistan’s Finance Minister Muhammad Aurangzeb has predicted positive economic developments in the ongoing fiscal year, including increased foreign exchange reserves and improved fiscal performance. The government is focused on reforms in the energy sector and privatizing loss-making enterprises. Pakistan has requested an IMF bailout package of $6-8 billion and the IMF has agreed to consider a larger, longer program. External buffers have deteriorated, but the government is implementing measures to reduce fiscal and current account deficits.