Finance Minister Muhammad Aurangzeb expressed optimism regarding Pakistan’s foreign exchange reserves, projecting a rise to “anywhere between $9 to $10 billion” by the end of June. Speaking at the seventh ‘Leaders in Islamic Business Summit’ in Islamabad, Aurangzeb highlighted the country’s progress, emphasising a significant improvement compared to previous years.
Acknowledging the importance of the International Monetary Fund (IMF) programme, Aurangzeb stressed that it should be viewed as a means to an end rather than an end itself. He underscored the necessity of the Stand-By Agreement (SBA), citing its crucial role in stabilising Pakistan’s economy during a challenging period.
During his recent visit to Washington, Aurangzeb noted the country’s commendable display of discipline in adhering to the IMF programme, earning praise for its commitment to economic stability. He emphasised the need for a longer and more comprehensive programme to ensure sustained macroeconomic stability and structural reforms.
Aurangzeb emphasised the urgency of executing economic reforms, stating that the country must transition from policy discussions to implementation. He identified the energy sector as a top priority, emphasising the need for sustainability in reforms related to power and petroleum.
Addressing tax challenges, the finance minister highlighted policy and enforcement gaps, as well as the need to incorporate undertaxed sectors into the tax net. He emphasised the importance of timely decisions and executions, citing a significant backlog of litigation with tax tribunals.
Regarding privatisation, Aurangzeb reiterated the government’s stance of divesting from state-owned enterprises (SOEs), emphasising the need for ministries and operating units to actively contribute to the process.
Looking ahead, Aurangzeb outlined a clear roadmap for exiting the IMF programme, expressing confidence in aligning with the Fund’s priorities. He anticipated reaching a staff-level agreement by June or early July, signalling progress towards economic autonomy.
In March, Pakistan reached a staff-level agreement with the IMF for the final review, awaiting approval from the Fund’s Executive Board. Upon approval, Pakistan will gain access to additional financial support, bolstering its economic resilience amidst ongoing reforms.