Federal Finance Minister Muhammad Aurangzeb has announced that Pakistan’s ongoing program with the International Monetary Fund (IMF) will be the country’s final one, reflecting confidence in the progress of economic reforms and the nation’s future direction.
In an interview with Nikkei Asia, the finance minister reaffirmed Pakistan’s commitment to fulfilling the reforms agreed upon with the IMF, while also shifting focus towards a development-oriented economic model for long-term growth.
Aurangzeb highlighted substantial improvements in Pakistan’s sovereign credit ratings as a result of the IMF-backed reforms. He pointed out that inflation, which had reached a peak of 38% in May 2023, has now fallen to just 3%, thanks to effective economic measures. The finance minister expressed optimism that Pakistan could secure a “B” rating from global credit agencies, which would further bolster investor confidence.
The government is actively working to boost exports and attract foreign investments to stabilize the economy. Aurangzeb revealed that Pakistan plans to re-enter global financial markets, including tapping into the yuan bond market to diversify funding sources. A Panda Bond issuance is expected before the end of the current fiscal year. He also underscored the growing industrial cooperation between Pakistan and China, announcing that the Pakistani-Chinese joint venture, Service Long March, would soon list its shares on the Hong Kong stock market. This venture, which focuses on manufacturing truck and bus tires, marks an important step in bilateral trade.
Aurangzeb further noted that Hong Kong is keen to encourage corporate listings, creating new opportunities for Pakistani companies to access international markets.
The finance minister assured that Pakistan has robust security measures in place to protect all foreign nationals, including Chinese citizens. “The safety of foreign nationals is our top priority,” he emphasized.
With inflation under control and positive economic reforms underway, Aurangzeb expressed confidence in Pakistan’s financial outlook. “This will be the last IMF program,” he affirmed, signaling a move toward sustainable economic development and greater self-reliance.
