Prime Minister Shehbaz Sharif said that his government was taking concrete and urgent measures as part of its efforts to put the economy on track.
PM Shehbaz’s resolve comes at a time when the country’s current account deficit (CAD) dropped to $0.2 billion in January 2023, down 90% from last year as the rupee’s depreciation slowed down imports, according to the country’s central bank.
He was talking to a delegation of global financial firm Rothschild & Co that called on him in Islamabad on Monday.
The Prime Minister said that despite facing natural disasters like floods and inheriting mismanagement from the previous government, the current government had taken solid measures to improve the economy.
He expressed the resolve of his government to put the economy on a solid footing by curtailing unnecessary imports while also increasing exports simultaneously.
The delegation said that the economic condition of Pakistan was stable and termed the skilled manpower of the country its real strength.
Members of the delegation said that the Pakistan Stock Exchange (PSX) was one of the most effective exchanges in the region.
The delegation also appreciated the awareness raised by Pakistan at international forums regarding the threat of climate change.
Economy in tatters
PM Shehbaz’s determination for the economy means a lot as the rupee, in less than a month, has lost more than a quarter of its value against the US dollar after the removal of artificial caps, and fuel prices have risen by more than a fifth as the government implemented fiscal measures required to unlock funds from an International Monetary Fund (IMF) bailout.
Meanwhile, the National Assembly, in order to iron out all irritants to the $1.1 billion tranche from the international lender, approved the Finance (Supplementary) Bill 2023 or ‘mini-budget’.
During the first seven months of the current fiscal year, the country’s current account deficit decreased by 67% to $3.8 billion, compared with a deficit of $11.6 billion during the same period last year.