Mid-July Agreement
WASHINGTON: Finance Minister Muhammad Aurangzeb expressed optimism that Pakistan and the International Monetary Fund (IMF) would reach a staff-level agreement by mid-July for the next expanded loan deal, on Sunday.
During a press briefing at the Pakistani embassy in Washington, following the conclusion of his week-long trip to the US, Aurangzeb emphasized the importance of implementing long-overlooked economic reforms for fostering a healthy economy. Pakistani Ambassador to the US, Masood Khan, also attended the briefing.
Aurangzeb anticipated the arrival of an IMF team in Pakistan by mid-May to finalize the terms of the new extended loan arrangement. He noted that while the draft of the new program would take shape later, discussions on its specifics would commence in mid-May.
Highlighting the success of the current Stand-by Arrangement (SBA), Aurangzeb expressed confidence that the final tranche of $1.1 billion would be disbursed soon after the IMF executive board’s approval by the end of April. He mentioned the IMF’s scheduled review of Pakistan’s SBA during a meeting by the month’s end.
Addressing the need for economic reforms, Aurangzeb underscored the government’s commitment to improving the taxation system and implementing digitalization in the Federal Board of Revenue (FBR).
He also mentioned progress on privatization efforts and highlighted Saudi Arabia’s plan to invest $5 billion in Pakistan.
Ambassador Masood Khan elaborated on the finance minister’s meetings with representatives of credit rating agencies, investors, and tech entrepreneurs in Silicon Valley.
He noted positive changes in the US attitude towards Pakistan and highlighted Aurangzeb’s discussions with counterparts from Saudi Arabia, China, and Turkey at the sidelines of the G20 Finance Ministers and Central Bank Governors’ Meeting.
Overall, both Aurangzeb and Khan expressed optimism about Pakistan’s economic prospects, citing assurances of cooperation from US authorities and the anticipation of positive developments from the IMF and World Bank in the near future.
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