Daily Times

Finance Minister Mohammad Aurangzeb says what he should say; in a recent talk, he said Pakistan’s latest macroeconomic indicators offer a hopeful outlook. The statement, however, raises questions about the depth and durability of these improvements. At the eighth edition of “The Future Summit,” Aurangzeb celebrated what he described as positive trends: a stabilising rupee, rising foreign exchange reserves, lower inflation, and a reduction in interest rates. Yet, for many Pakistanis, these macro-level metrics still feel far removed from everyday realities.

The minister’s remarks on Pakistan’s improving credit rating and the apparent stability of the twin deficits (fiscal and current account) present a picture of economic progress. However, challenges loom large. Food inflation, which has hit essential items like pulses and chicken, continues to burden the average household. While the government attributes rising prices to global trends, the fact remains that domestic inflation has yet to truly ease for ordinary citizens. A 60 per cent increase in pulses and 15 per cent hike in chicken prices underscores that for many, relief is more rhetoric than reality.

Mr Aurangzeb’s message to the private sector – calling for independence from government-led research and innovation – signals a shift towards a less interventionist approach. Yet, his scepticism toward government research efforts, especially in agriculture, raises another question: If the government steps back, will the private sector actually step up? Historically, the private sector has often struggled to drive progress without clear support and incentives from the state, particularly in fields like agriculture, where chronic issues such as water scarcity and outdated farming practices persist.

Moreover, the minister acknowledged the “unavoidable” nature of economic reforms, which, despite their lack of appeal, are vital for good governance. However, his call to action appears more theoretical than practical, particularly with structural issues in taxation, energy, and pensions still unresolved. Simply recognising the importance of reforms without a concrete roadmap may not yield the tangible results that Pakistan desperately needs.

Mr Aurangzeb’s concern over Pakistan’s rapid population growth and high rates of child malnutrition points to an underlying vulnerability: an unaddressed demographic challenge that could offset any economic gains. With 40 per cent of children under five malnourished, real economic progress cannot ignore such critical social issues.

Long story short, while the finance minister’s optimism may inspire hope, Pakistan’s economic foundations require more than high-level assurances. *