ISLAMABAD: Finance Minister Muhammad Aurangzeb addressed speculations about the International Monetary Fund (IMF) mission’s visit to Pakistan, stating there were no surprises as the country’s economic road map was shared with IMF officials.
During a press conference following the IMF mission’s visit, led by Nathan Porter from November 12 to 15, Aurangzeb emphasized that the IMF did not present any unexpected demands. He welcomed the mission’s visit, dismissing earlier reports that suggested the visit would necessitate a mini-budget or additional tax measures.
In a statement, the IMF urged Pakistan to broaden its tax base by targeting untapped revenue sources, highlighting the challenges in expanding tax collection. The Fund clarified that staff visits are standard practice for countries with semi-annual programme reviews, aimed at engaging with authorities on economic developments, policies, and planned reforms.
Aurangzeb noted that the IMF and Pakistan are engaged in continuous dialogue, building mutual credibility and trust through bilateral talks. The discussions covered reforms related to taxation, energy, state-owned enterprises (SOEs), privatization, and public finance, as well as climate resilience.
He shared that the economic road map was presented to the IMF mission, with interactions set to continue virtually. Aurangzeb also expressed his willingness to meet IMF officials face-to-face again.
Reflecting on the past four weeks, Aurangzeb recounted the Pakistani delegation’s visit to Washington for IMF-World Bank meetings. The delegation, including the Finance Secretary, Economic Affairs Division Secretary, and State Bank of Pakistan Governor, held extensive discussions with various stakeholders, including officials from the IMF, World Bank, Asian Development Bank, Asian Infrastructure Investment Bank, International Finance Corporation, and rating agencies.
Aurangzeb highlighted positive meetings with Moody’s and Fitch, resulting in upgrades in ratings in the first quarter of the fiscal year. He also engaged with counterparts from Saudi Arabia, the United Arab Emirates (UAE), China, Turkiye, the United Kingdom, and the US Treasury.
The minister credited the government’s prudent economic policies for reducing inflation from 38% to 7% and lowering the policy rate from 22% to 15%. Foreign exchange reserves have increased from two weeks of import cover to 2.5 months.
Aurangzeb stated that the international community, financial institutions, and rating agencies have commended the government’s efforts in transforming the economy from deficits to surpluses. Prime Minister Shehbaz Sharif is expected to share a home-grown agenda for economic stability with the nation soon.
Concluding the press conference, Aurangzeb called on political parties, media, and other stakeholders to collaborate on charters for the environment and economy to ensure a safe and healthy future for coming generations.
Published in Pakistan Khappay Report Date: November 18, 2024
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