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Governor of the State Bank of Pakistan, Jameel Ahmed, has stated that virtual discussions with the International Monetary Fund (IMF) are ongoing, and a staff-level agreement is expected to be finalized soon.
Speaking with the media on Wednesday after the Public Accounts Committee (PAC) meeting at the Parliament House, he addressed various economic matters. In response to a question, he revealed that the target for remittances for the current fiscal year has been set at $36 billion, reflecting an increase from previous estimates.
Discussing economic growth, Governor Jameel Ahmed projected that the GDP growth rate for the current fiscal year is expected to exceed 2.8%. Additionally, the target for the current account deficit has been reduced, signaling efforts to stabilize the economy. He further predicted that inflation during the fiscal year would range between 7% and 8%.
The PAC meeting, chaired by Junaid Akbar Khan, reviewed audit objections related to the Ministry of Finance for the fiscal year 2023-24. During the session, audit officials disclosed that the Economic Affairs Division had incurred additional expenditures amounting to Rs 34.5 billion in the fiscal year 2022-23.
Responding to these findings, the Secretary of Economic Affairs clarified that these additional expenses were due to continuous fluctuations in the exchange rate, which remained highly volatile throughout the period.
During the discussion, PAC Chairman Junaid Akbar sought an explanation from the Governor of the State Bank regarding the issue. Governor Jameel Ahmed explained that the Ministry of Finance is responsible for forecasting the exchange rate, while factors such as foreign exchange reserves, imports, and exports play a critical role in determining its fluctuations. He further noted that during the fiscal year 2022-23, the Pakistani rupee depreciated by 28% against the US dollar.
Amid these discussions, Pakistan People’s Party (PPP) leader Naveed Qamar proposed that the government should adopt a strategy of forecasting the exchange rate for three months and six months in advance. In response, Secretary of Finance Imdadullah Bosal acknowledged the suggestion as a constructive one and assured that efforts would be made to implement it.
Furthermore, the PAC directed the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) to submit a report detailing the implementation status of cases referred by the PAC over the past five years.
