Federal Finance Minister Muhammad Aurangzeb has expressed confidence in the government's efforts to improve the economy, citing increased tax collection through these measures and a reduction in the current account deficit as signs of progress.
Speaking at the Business Summit 2024 in Islamabad, the minister stressed that apart from the IMF, no plan B could be imagined, with the new staff-level agreement expected in June or July.
He also highlighted the positive impact of government initiatives on tax collection and the economy. He emphasized that despite challenges, the economy is on an upward trajectory, with measures such as the IMF's nine-month program providing crucial support to the economy.
"Last year, the State Bank's reserves were $3.4 billion, which have now swelled to $8 billion," he stated.
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Minister Aurangzeb also voiced optimism regarding the success of the government's campaign to register traders, stating that there is nothing to worry about regarding the registration scheme.
Furthermore, Minister Aurangzeb addressed concerns about tax cases worth billions pending in tribunals. He said the law minister has been asked to look into these matters.
"There are Rs1.73 trillion worth of cases awaiting resolution. These tribunals are under the jurisdiction of the administration. We have to solve this matter, not the courts," he stressed.
Regarding structural reforms, Minister Aurangzeb stressed the importance of reforms in sectors like energy to attract investment. He reassured that the government is actively working to create an enabling environment for investment. He also made it clear that no one was forcing Pakistan to do anything, "we are going to the 24th IMF program for the sake of national interest at our own will".
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On the topic of the IMF program, Minister Aurangzeb disclosed that discussions will commence upon the arrival of the IMF mission to Pakistan, expected by mid-May. "We hope that if everything goes well and the privatization is agreed upon, the staff-level agreement will be signed at the end of June or the beginning of July," he maintained.
Minister Aurangzeb reiterated that participation in the IMF program is a strategic decision made in the national interest, emphasizing the government's commitment to economic stability and growth.
As Pakistan navigates economic challenges and works towards sustainable growth, Minister Aurangzeb's remarks underscore the government's determination to implement reforms and pursue policies that benefit the nation's economy and its citizens.
