Interim Finance Minister Dr. Shamshad Akhtar emphasized the role of the State Bank of Pakistan (SBP) in correcting the economic course of the country due to fiscal imbalances and the widening gap between revenue and spending. Speaking at an event in Karachi organized by the Korangi Association of Trade and Industry (KATI), she stated that in the face of fiscal imbalances and a high current account deficit, only the key interest rate set by the SBP can address the situation. She noted improvements in the current account, attributing them to the monetary rate adjustments.

Dr. Akhtar acknowledged that inflation had not been fully controlled by the current interim government but claimed that it was decreasing. She also highlighted the effective implementation of World Bank and International Monetary Fund (IMF) programs. An IMF delegation was set to arrive in Pakistan on November 2 to discuss program details.

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The interim minister expressed confidence in the IMF program’s progress and expected inflows from other multilateral institutions once the IMF disburses its $700 million tranche. She acknowledged the challenges facing industries and emphasized the caretaker government’s commitment to addressing their concerns. Dr. Akhtar mentioned the development of an economic recovery plan as instructed by the interim premier, aiming to uplift the economy from its difficult situation.

She stressed the urgency of reviving the economy, expecting a growth rate of around 2% to 3%, and citing improved performance in sectors like large-scale manufacturing, power, cement production, tractors, fertilizers, and cotton production. She also noted the strengthening of the Pakistani Rupee, which had stabilized at Rs279 in the interbank, improving by 8%. The minister praised law enforcement agencies for curbing dollar smuggling at the borders and highlighted the role of exchange companies’ reforms in supporting the local currency.