Pakistan’s economy is showing significant signs of recovery due to the coordinated efforts of the federal government and military leadership, dispelling widespread rumors of a possible default.
Moreover, positive economic developments in recent days have signaled a brighter future of growth and prosperity for the country.
The State Bank of Pakistan (SBP) recently announced a reduction in the base interest rate to 17.5 per cent, citing a sharp decline in inflation over the past two months.
In addition, SBP released a report indicating a boost in foreign exchange reserves, which increased by $56.2 million during the week ending September 6. Total reserves now stand at $14.79 billion, with the SBP’s reserves reaching $9.46 billion and commercial banks’ reserves climbing to $5.32 billion.
Further optimism stems from the Pakistan Stock Exchange, where the 100-index rose by 365 points to close at 79,017, marking a strong trading day. The KMI 30 index also gained 323 points, closing at 125,120. The market saw the trading of 580 million shares, valued at Rs16.36 billion, while market capitalisation increased by Rs36 billion to Rs10,506 billion.
Additionally, the Pakistani rupee strengthened against the dollar in the interbank market, with the exchange rate falling by 10 paise, closing at Rs278.44. This marks the third consecutive day of stability, suggesting effective government measures to curb dollar speculation.
Another significant development is the upcoming IMF board meeting on September 25, where it is expected to approve Pakistan’s $7 billion loan program. This is seen as a major step towards stabilising the economy and restoring investor confidence.
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Moreover, Finance Minister Muhammad Aurangzeb confirmed that all issues with the IMF have been resolved, and final approval is anticipated soon.
Furthermore, the government recently reduced petrol prices, which helped control inflation. With global oil prices falling, the government is expected to pass on further relief to the public. Efforts to lower electricity bills through agreements with independent power producers (IPPs) have also been welcomed, and a decrease in electricity consumption in the coming months is expected to bring additional relief.
The recent developments, coupled with improved ratings from Moody’s, signal that Pakistan’s economy is on the right path. Despite attempts to spread misinformation, the facts demonstrate that the country is not on the brink of default. Instead, these signs point to a period of stability and growth in Pakistan’s economy.
