Pakistan hopes for about 3.5% growth this year despite floods, finance minister says - As-salamu alaykum
As-salamu alaykum. ISLAMABAD: Pakistan is aiming for roughly 3.5% economic growth in the current fiscal year despite heavy flood damage to crops and farmland, Finance Minister Muhammad Aurangzeb told a Chinese media outlet on Tuesday.
Pakistan, one of the countries most vulnerable to climate shocks, experienced another severe monsoon this year that caused widespread flooding. The rains have killed over 1,000 people and about 22,000 livestock, and destroyed crops across roughly 2.2 million acres since late June.
Punjab, the country’s agricultural heartland, was hit hardest after excess waters released from India sparked a disastrous surge in late August. More than 4.5 million people were affected and authorities had to move over 2.6 million people out of high-risk zones.
“We grew at 3% GDP last year,” Aurangzeb said. “We had estimated growth a little over 4% this year, but given the flood situation, this will shave off a certain percentage. Still, I’m quite hopeful that we can manage anything close to 3.5% during this fiscal year.”
He said the wider economy is on a recovery path: inflation is easing, foreign exchange reserves are improving, and international rating agencies have started showing renewed confidence.
“It’s after a hiatus of two and a half to three years that we have alignment between the rating agencies,” Aurangzeb noted, referring to upgrades earlier this year.
The minister also admitted that privatization has been difficult in the past but pointed to recent movement, mentioning the sale of the First Women’s Bank to a UAE group. He described it as a small bank that had long been on the privatization list, and said Pakistan International Airlines is likely next.
“We are very sanguine that before the year is out, that’s going to be privatized as well,” he added.
Aurangzeb emphasized the importance of China–Pakistan economic ties for the country’s welfare and said the focus is shifting from infrastructure projects toward industrialization.
May Allah make things easier for those affected by the floods and bless efforts to rebuild and revive the economy.
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