LAHORE – Federal Finance Minister Muhammad Aurangzeb has warned that global conflicts could affect the prices of essential commodities, as uncertainty continues to weigh on the global economy.
Addressing a ceremony in Lahore, the finance minister said Pakistan’s economic recovery was continuing despite international challenges. He said the government was providing investors with all possible facilities to encourage investment in the country.
He noted that international investors were exploring opportunities in Pakistan as well as other markets, adding that investors from Europe and the United States were also showing interest in Pakistani bonds.
Aurangzeb said global conflicts could have implications for the prices of essential goods. He added that the government was pursuing reforms to improve the tax system and broaden the tax base, while encouraging private-sector participation in economic growth.
The finance minister said the government had made efforts to ensure that people in Pakistan did not have to queue for petrol, as had happened in some other countries. He said the government had introduced targeted subsidies to provide relief to those who needed it most, explaining that owners of large vehicles did not require such assistance.
He said work was underway to meet the country’s energy requirements for the winter, particularly its needs for natural gas and liquefied natural gas (LNG). He maintained that Pakistan had avoided an energy shortage and that the supply situation for crude oil and other energy sources remained satisfactory.
Aurangzeb said Pakistan’s heavy reliance on imports had previously contributed to balance-of-payments crises. However, he added that sustained efforts over the past four to five years had helped restore the country’s credit rating to the ‘B’ category.
The finance minister expressed optimism that Pakistan’s remittances would reach $44 billion during the current fiscal year. Although the government had feared that the war could lead to a decline in remittances, he said an increase had instead been recorded.