The current IMF program will be the last, Federal Finance Minister
In a recent press conference in Islamabad, Federal Finance Minister Muhammad Aurangzeb announced that the ongoing program with the International Monetary Fund (IMF) will be the last for Pakistan. He emphasized the need for the economy to be documented in order to advance towards membership in the Group of 20 (G20) nations.
Key Statements from the Finance Minister
During the press briefing, Finance Minister Aurangzeb highlighted several crucial points regarding Pakistan's economic strategy. He stated that the current program with the IMF has been settled and asserted that increasing tax revenue is essential for the nation's economic stability. Aurangzeb explained that achieving microeconomic stability is not a one-time goal but a continuous journey.
He also mentioned that offers for Treasury bills and bonds aimed at securing local loans had been rejected, reinforcing a shift towards more sustainable financial practices.
Economic Outlook
Aurangzeb expressed optimism about the trajectory of the Pakistani economy, stating that it is moving in the right direction and is on the path to improvement. He noted that achieving greater tax revenue and enhancing the documentation of the economy are crucial steps for sustainable growth.
Role of Foreign Experts
The Finance Minister acknowledged the necessity of engaging foreign experts to improve the country's economic conditions. He emphasized that while Pakistan has made strides in various sectors, external expertise could further enhance these efforts.
Improvements in Foreign Exchange Reserves
Aurangzeb shared positive news about the country’s foreign exchange reserves, stating that they have reached their highest levels. He noted that domestic exports and IT exports have also seen significant growth, which he attributes to an increase in investor confidence—one of the major successes for the economy.
He further mentioned that the policy interest rate has decreased by 4.5 percent, expressing hope that both the exchange rate and the policy rate would align with the government's expectations in the near future.
Conclusion
Federal Finance Minister Muhammad Aurangzeb’s remarks signal a pivotal moment for Pakistan’s economic strategy, indicating a shift towards sustainable growth and fiscal responsibility. As the country aims for improved documentation of its economy and strives for G20 membership, the focus on increasing tax revenue and securing expert assistance appears to be central to its future economic plans.
