Remittances to hit $35bn in FY25: Finance Minister

KARACHI: Finance Minister Muhammad Aurangzeb on Saturday said the inflows of workers’ remittances are expected to hit an all-time high at $35 billion in the current fiscal year 2024-25, compared to $30.25 billion registered in FY24.

Talking to media persons at the Overseas Investors Chamber of Commerce and Industry (OICCI) in Karachi, the finance minister said state-owned entities (SOEs) are costing the national exchequer a loss of Rs2.2 billion per day.

“We have sustained losses to the tune of Rs6 trillion in the last 10 years, which comes to around 50% of the revenue collection target set at Rs12.9 trillion for FY25,” he said.

Investment, growth and credit safety: Aurangzeb pledges robust insolvency regime

Aurangzeb was of the view that the government sees controlling these losses through privatisation.

“Privatisation, liberalisation and deregulation are the way forward.”

The former banker shared that foreign companies operating in Pakistan have sent profit and dividends worth $2.2 billion in May-June 2024, clearing the entire backlog of the repatriation to date.

“Now there is no restriction on sending the repatriation from the Ministry of Finance and State Bank of Pakistan (SBP). This is now up to commercial banks to facilitate the foreign companies in continuing to send profit and dividends without any delay,” he maintained.

Pakistan moving on path of economic stability: Aurangzeb

Answering a query, Aurangzeb said the rupee-dollar parity depends on the demand and supply of the greenback in the market, while market forces are determining the exchange rate instead of the government.

Aurangzeb said the government has prioritized inviting Foreign Direct Investment (FDI) in export-led projects and increasing exports to achieve sustainable economic growth.

“Whenever our economy hit 4% growth rate, the issues of widening current account deficit (CAD) and balance of payment arise, as we are running an import-led economy,” he said.

The finance minister, however, did not respond to the question of when Pakistan would surpass the 4% growth rate.