Federal Minister for Finance Muhammad Aurangzeb said on Friday that the International Monetary Fund (IMF) Executive Board will approve the new loan program in September.
Speaking to media in Islamabad on Friday, he expressed the government’s determination to collect tax from the traders and provide facilities.
The minister mentioned that discussions are occurring with the IMF every second day, and China, Saudi Arabia, and the United Arab Emirates have also given a positive response, adding that the friendly countries will take the international lender in confidence through executive directors.
Aurangzeb further informed about the positive discussions with the commercial banks for the provision of funds, adding that the response from commercial banks is favorable because of the positive rating.
The minister went on to say that Pakistan needs external financing of $2 billion for the current fiscal year and $3 billion during the next 37 months.
Additionally, the FinMin said that held an important meeting with the delegation from Turkish Airlines and the cement company.
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During the meeting, Aurangzeb said that the partnership with Turkey in the aviation sector is a vital part of the strong bilateral relations between the two countries. Both sides agreed to further enhance economic cooperation and stability between Pakistan and Turkey.
Earlier last month, the Finance Minister expressed optimism about the newly agreed International Monetary Fund (IMF) program, emphasizing its potential to bring much-needed macroeconomic stability to Pakistan.
The minister highlighted the critical role of structural reforms in achieving sustainable economic growth.
Addressing the media after the conclusion of discussions with the IMF team, Finance Minister Aurangzeb underscored the significance of the comprehensive 37-month Extended Fund Arrangement (EFF), which promises to support Pakistan with $7 billion.
The agreement, which is pending approval by the IMF’s Executive Board, aims to capitalize on the macroeconomic stability Pakistan has achieved over the past year.
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“The IMF program will help bring macroeconomic stability,” stated the minister. “Under this program, we need to ensure structural reforms that are essential for sustainable development.”
Minister Aurangzeb outlined the necessity of instituting wide-ranging reforms in key areas such as public finance, energy, and government institutions.
“There is a need to bring sustainability in public finance, energy, and government institutions. Our focus will be on strengthening public finances through fiscal consolidation, broadening the tax base, and removing exemptions while ensuring critical development and social spending,” he said.
He further commented that the government will introduce structural reforms in the coming years.
