Finance Minister Muhammad Aurangzeb has said that Pakistan’s target of over 4% economic growth this year is now difficult to achieve due to the impact of recent floods. Speaking to Chinese media, he explained that despite the challenge, the government remains hopeful of achieving around 3.5% GDP growth by the end of the fiscal year.
He noted that Pakistan has made key gains on the economic front, including stronger foreign exchange reserves, reduced inflation, and a lower policy rate. The current reserves, he said, are enough to cover two and a half months of imports, offering some stability in the external sector.
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Aurangzeb added that inflation has now dropped to single digits. He said these achievements have earned international recognition, with three major global credit rating agencies upgrading Pakistan’s credit outlook. These developments reflect growing global confidence in Pakistan’s economic management.
Looking back, he said Pakistan recorded 3% GDP growth last year. The original goal for the current fiscal year was above 4%, but floods have affected that trajectory. However, the government still aims to reach a 3.5% growth rate, which would reflect resilience amid external shocks.
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The finance minister also shared updates on CPEC’s second phase, calling it a significant step forward. He said new Chinese investments are under discussion, and future economic cooperation between the two countries remains strong. He reaffirmed Pakistan’s commitment to long-term development partnerships with China.