Federal Finance Minister Muhammad Aurangzeb has declared that Pakistan's ongoing International Monetary Fund (IMF) program will be its last, signaling optimism about the country’s economic reforms and future trajectory.
In an interview with Nikkei Asia, the minister emphasized Pakistan’s commitment to completing reforms agreed upon with the IMF while shifting focus to a development-oriented economic model.
The finance minister highlighted significant improvements in Pakistan’s sovereign credit ratings following the IMF bailout package. He revealed that inflation, which had peaked at 38% in May 2023, has now dropped to just 3%, largely due to effective economic measures and reforms. Muhammad Aurangzeb expressed confidence that Pakistan could achieve a "B" rating from global credit agencies, further boosting investor confidence.
The government is actively working to increase exports and attract foreign investments to stabilize the economy. Aurangzeb shared that Pakistan plans to re-enter global financial markets, leveraging the yuan bond market to diversify funding sources. The issuance of a Panda Bond is anticipated by the end of the current fiscal year.
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The minister also underscored the importance of Pakistan’s collaboration with China. He announced that the Pakistani-Chinese joint venture, Service Long March, is expected to list its shares on the Hong Kong stock market soon. This venture focuses on manufacturing truck and bus tires, reflecting the growing industrial cooperation between the two nations.
Additionally, Aurangzeb highlighted that Hong Kong is ready to encourage corporate stock listings, opening new avenues for Pakistani businesses to access international markets.
Acknowledging the importance of foreign partnerships, the finance minister assured that robust security measures are in place to protect all foreigners, including Chinese citizens, in Pakistan. "The safety of foreign nationals is of utmost importance," he reiterated.
With inflation under control and economic reforms showing positive results, the finance minister expressed optimism about Pakistan’s financial future. "This will be the last IMF program," he stated confidently, indicating a shift towards sustainable development and economic self-reliance.
