|
Getting your Trinity Audio player ready...
|
Pakistan economic growth 2024-Caretaker Finance Minister Dr. Shamshad Akhtar predicts that Pakistan’s economy will grow by 2 to 2.5 percent in the fiscal year 2024. This growth is expected to be mainly driven by the agriculture and industrial sectors, as mentioned in her virtual speech at the ‘IPO Summit 2024’ on Saturday.
Dr. Akhtar expressed concern about the lack of new initial public offerings (IPOs) at the Pakistan Stock Exchange (PSX), highlighting that only one IPO took place in 2023. She stressed the importance of revitalizing the IPO market to attract investments and diversify business financing.
On the fiscal front, Dr. Akhtar projected that tax revenue collection might surpass the target of Rs9.4 trillion, potentially reaching Rs10 trillion by the year’s end. She also noted the positive increase in the country’s foreign exchange reserves, rising from $4 billion to $9.1 billion during her tenure as finance minister.
Read Also: 2024 Global Economic Outlook: UN Predicts Modest GDP Growth for Pakistan
Discussing monetary policy, the finance minister mentioned that the State Bank of Pakistan (SBP) is contemplating a reduction in the policy rate, currently at a record 22%, to stimulate economic activity. She clarified that any decision on rate cuts would depend on the easing of recent high inflation levels.
Dr. Akhtar praised the performance of the Pakistan Stock Exchange, with a 55% return in 2023, closing the year at over 62,450 points. She emphasized the PSX’s crucial role as a capital source for the private sector and urged efforts to expand the investor base, which has remained stagnant at about 200,000 for some time.