Pakistan’s economy was expected to grow by 2 to 2.5% in the ongoing fiscal year, caretaker Finance Minister Shamshad Akhtar said on Saturday.

“Growth is to rebound into the positive trajectory in the range of 2 to 2.5%, with agriculture expected to grow by 5.6%, and industry by 2.5% this fiscal year,” she said while addressing the IPO Summit-2024, held in Karachi. The finance minister had joined the event via video link.

She said that the tax collection target was projected to touch the Rs10 trillion mark as the Federal Board of Revenue struggles to launch additional reforms.

The government has managed to generate a primary surplus and the “substantial deficit on the current account itself has turned to a surplus thus far”, owing to the adoption of austerity measures, Akhtar said.

Pakistan has made significant progress towards macro-economic, exchange rate and financial stability, she told participants of the event.

The interim finance minister was of the view that the capital markets cannot thrive under a “very high interest rate regime.”

She added that the State Bank of Pakistan was conscious of the fact that the country would have to move to lower the interest rate subject to inflation coming down.

Foundation has been laid for attracting foreign direct investment, Akhtar said, adding: “Economic recovery process has bolstered business confidence and market sentiments.”

The summit, organized by the Pakistan Stock Exchange in partnership with the National Clearing Company of Pakistan Limited (NCCPL) brought together key stakeholders in the financial sector. The summit was held at the Mariott Hotel in Karachi “in order to make the country’s economic stability.”

Muhammad Luqman, the chief executive officer of the NCCPL, stating that IPOs have streamlined the process for the corporate sector to increase its capital.

On the sidelines of the summit, Luqman mentioned that NCCPL, in collaboration with PSX, “plays a pivotal role in facilitating capital acquisition through IPOs by automating processes and providing capital gains to the corporate sector.”

He also highlighted the completion of the investor onboarding process in UIN, allowing companies, alongside NCCPL, CDC, and PSX, “not only to increase their capital but also to enable small investors to participate in IPOs through their mobile phones from the comfort of their homes.”

The IPO Summit 2024 featured exhibition stalls from various companies related to the capital market, providing a platform for networking and showcasing the latest developments in the industry.