Finance Minister Muhammad Aurangzeb is advocating for the establishment of permanent macroeconomic stability in Pakistan. In an interview with Geo News, Finance minister highlighted the progress made in the first quarter of 2024, citing improvements in GDP, macroeconomic stability, and a stable exchange rate. He emphasized the need to sustain these gains over the long term.
Aurangzeb discussed several strategies to achieve this goal, including addressing revenue leakages, reducing expenditure in the Public Sector Development Program through public-private partnerships, and exploring untapped segments such as China’s bond market to boost revenue streams. He announced Pakistan’s intention to launch a Panda bond in the next fiscal year to access liquidity from the Chinese market.
Expressing confidence in Pakistan’s ability to meet all requirements for the IMF talks starting soon, Aurangzeb highlighted the country’s successful completion of all Structural Benchmarks, Qualitative Performance Criteria, and Indicative Targets for the IMF review. This final review of the Standby Arrangement (SBA) is expected to lead to a staff-level agreement and the disbursement of the final tranche of $1.1 billion, pending approval by the IMF Executive Board.
Looking ahead, Aurangzeb mentioned the government’s plan to seek commercial financing and support primarily from Middle Eastern banks in the post-Extended Fund Facility (EFF) scenario. This financing is intended to assist Pakistan with its trade business and other economic needs.
The Finance Minister’s focus on achieving macroeconomic stability through a combination of strategic measures underscores the government’s commitment to ensuring a strong and sustainable economic future for Pakistan.
