These nations are expected to lend their support by engaging with the IMF through their respective executive directors, adding a layer of international endorsement to Pakistan’s financial strategy
By Asghar Ali Mubarak
ISLAMABAD: Federal Minister for Finance Muhammad Aurangzeb has outlined an optimistic and strategic path for Pakistan’s economic recovery and stabilization, with a pivotal focus on the anticipated approval of a new loan program by the International Monetary Fund (IMF) in September. Speaking to the media in Islamabad, Aurangzeb underscored the government’s resolute efforts to enhance tax collection mechanisms and improve facilities for traders as part of a broader economic reform agenda.
The upcoming IMF loan program, which is crucial for Pakistan’s financial stability, is expected to be green-lighted by the IMF’s Executive Board next month. Aurangzeb provided insights into the ongoing dialogue with the IMF, highlighting that these discussions are occurring frequently, approximately every second day. This active engagement underscores the critical nature of the negotiations in securing the financial assistance required to bolster Pakistan’s economy.
In addition to IMF discussions, Aurangzeb noted the positive responses from key international allies, including China, Saudi Arabia, and the United Arab Emirates. These nations are expected to lend their support by engaging with the IMF through their respective executive directors, adding a layer of international endorsement to Pakistan’s financial strategy. This support is vital for reinforcing Pakistan’s position and credibility in securing the IMF program.
Furthermore, the Finance Minister revealed that positive engagements with commercial banks are also a crucial component of Pakistan’s financial strategy. The favorable reception from these banks, attributed to Pakistan’s positive credit rating, is expected to facilitate the provision of necessary funds, contributing to the country’s financial stability. Aurangzeb articulated Pakistan’s immediate and medium-term financial needs, specifying an urgent requirement for $2 billion in external financing for the current fiscal year.
Additionally, he projected a need for $3 billion over the subsequent 37 months. These figures highlight the substantial financial support required to navigate the country’s economic challenges and maintain stability. In a related development, Aurangzeb conducted a significant meeting with representatives from Turkish Airlines and a cement company. The discussion emphasized the importance of the Pakistan-Turkey partnership in the aviation sector, reflecting the broader bilateral relations between the two countries.
Both parties expressed a commitment to furthering economic cooperation and stability, which is seen as a key aspect of strengthening ties and promoting mutual growth. Earlier statements from Aurangzeb reflected his optimism regarding the IMF program, particularly the 37-month Extended Fund Arrangement (EFF) which is designed to support Pakistan with $7 billion. This program, pending approval, aims to build on the macroeconomic stability achieved over the past year.
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