ISLAMABAD - Finance Minister Muhammad Aurangzeb on Tuesday said that agreement with the International Monetary Fund (IMF) is in advanced stages of approval and the government would make it successful and last programme for the country.
In his televised remarks, finance minister said that Pakistan had already signed a Staff Level Agreement (SLA) with the IMF, which is in advanced stages of securing the agreement’s approval by the IMF executive board. Sharing the Prime Minister’s hopes that this will be the last IMF programme, Aurangzeb warned that it would depend on structural reforms and the country becoming self-sufficient.
The minister claimed that country’s economic indicators are moving in the right direction due to the measures taken by the government in the last six months. He said that the country’s foreign exchange reserves are around $9 billion, which are more than two months of import cover. The inflation rate has declined to single digit in August. The policy rate is also coming down, which would benefit all the sectors of the economy, he added. He further said that two international agencies had upgraded Pakistan’s ranking due to the improved economic situation of the country. Muhammad Aurangzeb once again emphasized the need for taking the tax to GDP ratio to over thirteen percent. He said all the sectors including the wholesalers, distributors and retailers will have to contribute to the economy. He said the results of enforcement and digitalization efforts will start appearing this month. He said Rs132 billion of refunds have been paid to the exporters. The finance minister also affirmed that the size of federal government will come down. He said there is a method to it and we are listening to the departments as well in this regard.
Meanwhile, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a meeting with Mikko Keto, the Global CEO of FLSmidth, a leading global provider of engineering and equipment for the mining and cement industries. The meeting was also attended by Jakob Linulf, Ambassador of Denmark, alongside senior officials from FLSmidth and the Finance Division. During the meeting, the finance minister emphasized Pakistan’s strategic shift towards an export-led growth model aimed at ensuring sustainable economic development across various sectors. He also highlighted the government’s ongoing efforts in the form of comprehensive reforms in the energy and power sectors, privatization of state-owned enterprises, and restructuring of the tax system and public expenditure.
Senator Aurangzeb underscored the government’s commitment to facilitating private sector-led growth, with the state focusing on creating a business-friendly environment. “We are determined to pursue our change agenda despite resistance from those favoring the status quo. The private sector must lead the way, and our role is to ensure maximum facilitation,” he added. Mikko Keto, the Global CEO of FLSmidth, expressed his appreciation for the support provided by the government of Pakistan and shared insights into the company’s growing presence in the country. He highlighted FLSmidth’s increased investment in Pakistan’s mining sector, which has led to enhanced local value addition, increased taxation contributions, and the creation of employment opportunities for locals. “We have a comprehensive understanding of the mining potential in Pakistan, and we are keen to explore further investment opportunities through local partnerships and collaborations,” stated Keto.
The finance minister assured the delegation of Pakistan’s dedication to providing a favorable and conducive investment climate for foreign investors. The meeting concluded with both parties expressing a strong commitment to strengthening the economic ties between Pakistan and Denmark, particularly in the mining and cement industries, which hold significant potential for growth and development.
