ISLAMABAD: Finance Minister Mohammad Aurangzeb announced on Wednesday that inflation in Pakistan has fallen to 3% this month, attributing the decline to the country's ongoing economic reforms.

Speaking in an interview with Nikkei Asia, the minister emphasized that this significant reduction followed a period of high inflation, which had reached a staggering 38% in May 2023.Aurangzeb expressed optimism about the country's economic trajectory, stressing that the government is committed to continuing reforms in accordance with the conditions set by the International Monetary Fund (IMF). He remarked that the ongoing 25th IMF program would be the final one, signaling Pakistan's efforts to achieve long-term stability without relying on frequent financial assistance from the global lender. The finance minister highlighted that Pakistan's focus is shifting towards stabilizing its export growth model and attracting foreign investment. He further explained that the country is actively re-engaging with global financial markets, positioning itself for greater participation in international trade and investment.

Pakistan is also making strides in accessing China's financial markets, with plans for issuing yuan-denominated bonds and encouraging Pakistani companies to list on the Hong Kong Stock Exchange. Additionally, Aurangzeb confirmed that Pakistan is preparing for the first issuance of Panda Bonds by the end of the current fiscal year, a move aimed at diversifying the country's financial resources. He expressed confidence that these steps would result in an improved credit rating for Pakistan, with expectations of achieving a 'B' rating from global credit agencies in the near future. On the topic of China-Pakistan cooperation, the finance minister underscored the strategic importance of the China-Pakistan Economic Corridor (CPEC), which he described as a cornerstone for enhancing bilateral relations. As a flagship project of China's Belt and Road Initiative, CPEC continues to play a pivotal role in Pakistan's economic development, he added. The minister also mentioned the potential for joint stock listings of Pakistani and Chinese ventures in Hong Kong, expanding opportunities for Pakistani businesses to tap into international capital markets. Aurangzeb reassured that Pakistan remains committed to maintaining the safety and security of Chinese nationals and other foreigners working on various development projects in the country. This is especially important as Pakistan continues to implement CPEC projects, which require strong international collaboration and trust. The finance minister's remarks reflect Pakistan's broader efforts to stabilize its economy and strengthen its position in the global financial landscape, with a clear focus on reform-driven growth, investment, and international partnerships.