Islamabad (Commerce Desk): Federal Finance Minister Muhammad Aurangzeb has expressed concern over the possibility of rising prices of essential commodities, saying that supplies of crude oil and other energy sources are satisfactory. However, he added that further measures would be needed to meet the country's gas and liquefied natural gas (LNG) requirements.
According to Dunya News, addressing a ceremony at a private university in Lahore, the finance minister said Pakistan had not allowed an energy shortage to develop. There had been no queues at petrol pumps for fuel, nor had the energy situation led to a deterioration in law and order.
Muhammad Aurangzeb said Pakistan's information technology (IT) export earnings had increased from $1 billion to $4.6 billion, while IT exports are expected to reach $5.5 billion during the current fiscal year.
According to him, Pakistan's foreign exchange reserves are at their highest level in the country's history and are sufficient to cover more than three months of imports. In the past, these reserves had fallen to the equivalent of just two weeks of imports.
The finance minister said Pakistan's credit rating had improved three times since April last year, while significant steps had also been taken to gain access to international financial markets. Pakistan conducted a private placement in April this year, accessed international markets through the issuance of Panda bonds, and issued €3 billion worth of bonds in the first week of September.
He said orders received from investors for Pakistani Eurobonds were twice the volume of bonds issued. Investors from Asia, the Middle East, Europe, and the United States had also expressed interest in Pakistani bonds. According to him, global investors are now assessing Pakistan's economic situation following its programme with the International Monetary Fund (IMF), while the current programme is due to end in October next year.
Discussing the energy situation, Muhammad Aurangzeb said Pakistan had taken effective measures to secure energy purchases and supplies despite regional conflicts. Adequate arrangements were in place to meet energy requirements until November, while planning for the winter season was also underway.
The finance minister said the government had decided to provide targeted subsidies instead of general subsidies to ensure that financial relief reached those who needed it most. Targeted subsidies had been provided for motorcycles, three-wheelers, and vehicles with engine capacities below 800cc. So far, 12 million unique individuals had benefited from the scheme. Overall, approximately 40 to 50 million people across the country had benefited from this relief.
He further said Pakistan was continuing to implement structural reforms alongside economic stabilisation, adding that the reforms were no longer limited to the planning stage and had entered the implementation phase.