Finance Minister Muhammad Aurangzeb announced on Saturday that Pakistan’s remittances are expected to reach a record $35 billion in the 2024-25 fiscal year, surpassing the $30.25 billion recorded in FY24. Speaking to the media at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, he also revealed that state-owned enterprises (SOEs) are causing a daily loss of Rs2.2 billion to the national treasury.
Aurangzeb stated that Pakistan has incurred a total loss of Rs6 trillion over the last decade, nearly 50% of the Rs12.9 trillion revenue target for FY25. He emphasized that privatization, liberalization, and deregulation are key to reducing these losses and improving the economy.
The finance minister also noted that foreign companies operating in Pakistan repatriated $2.2 billion in profits and dividends in May-June 2024, clearing the backlog. He assured that there are no longer restrictions on repatriation, with commercial banks now responsible for facilitating these transactions.
On the exchange rate, Aurangzeb explained that the rupee-dollar parity is determined by market forces, and the government is not directly influencing the rate. He reiterated that the government is focused on attracting Foreign Direct Investment (FDI) into export-driven projects and boosting exports to achieve sustainable growth. However, he declined to answer when Pakistan might exceed a 4% economic growth rate.
