SBP actively managing exchange and interest rates to promote stability:
Aurangzeb
Federal Finance Minister Muhammad Aurangzeb has
stated that the State Bank of Pakistan (SBP) is actively managing exchange and
interest rates to promote economic stability, and the overall situation is
expected to improve further.
The minister made these remarks while inaugurating the Job and Education Expo at the Expo Centre in Karachi,
organized by the Pakistan Hindu Council. The event featured around 120 stalls
from various educational institutions and companies aimed at engaging with
students and job seekers.
Addressing the media, Aurangzeb expressed
appreciation for the event, noting the presence of future national leaders.
While both public and private institutions participated, he pointed out the
noticeable absence of the corporate sector and urged its greater involvement in
such initiatives.
“Technology is the future,” he said, encouraging youth to pursue excellence with passion and determination.
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Commenting on the Independence Day celebrations of “Marka-e-Haq”, Aurangzeb applauded the participation of all religious communities in Pakistan, highlighting national unity.
He emphasized that the corporate sector must
step up and that interest rates should not dominate the economic agenda.
Aurangzeb stressed the need to broaden financial avenues beyond traditional
banking and urged a shift towards capital markets, particularly through
integrating the debt capital market into the Pakistan Stock Exchange for
improved efficiency.
On the energy sector, he noted that circular
debt in power is on the decline, with three DISCOs (Distribution Companies) set
for privatization. Efforts are also underway to address long-standing circular
debt in the gas sector, which continues to burden the economy.
Clarifying the government's role in monetary
policy, the minister reiterated that interest rates are under SBP’s
jurisdiction, and the exchange rate will remain market-driven. He noted that funding
resources are already available, and the key challenge now is deploying them
effectively.
Aurangzeb acknowledged Mustafa Kamal’s efforts in population control and highlighted the critical role of women’s participation in the economy as a catalyst for poverty alleviation. He confirmed ongoing discussions with the World Bank to support initiatives in these areas.
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Regarding the IMF programme, he stated that the review mission is expected soon under the ongoing 37-month programme, and that the government remains in regular contact with the Fund. Looking ahead, he expressed optimism that Pakistan could achieve developed nation status by 2047.
Aurangzeb also referenced Pakistan’s success
in combating money laundering, crediting the country’s strong legal framework
for its removal from the FATF grey list, and expressed confidence it would
remain compliant moving forward.
Commenting on recent flood damage in Khyber
Pakhtunkhwa, he said immediate efforts were focused on relief and
rehabilitation, noting that it is still too early to assess the full extent of
losses.
When asked about calls from traders for a new province, the finance minister did not offer a direct response.
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He stressed the need for sustainable growth over quick fixes, saying the government’s role is to create an enabling environment. He also praised the success of public-private partnerships and emphasized the importance of embracing artificial intelligence and future technologies.
“Economic ups and downs are part of the cycle, but talent endures,” he said. “We’ve achieved economic stability, and the three major international rating agencies are now showing a positive outlook on Pakistan.”
Source:
Express Tribune