Finance Minister Muhammad Aurangzeb has expressed optimism about the newly agreed International Monetary Fund (IMF) program, emphasizing its potential to bring much-needed macroeconomic stability to Pakistan.
The minister highlighted the critical role of structural reforms in achieving sustainable economic growth.
Addressing the media after the conclusion of discussions with the IMF team, Finance Minister Aurangzeb underscored the significance of the comprehensive 37-month Extended Fund Arrangement (EFF), which promises to support Pakistan with $7 billion.
The agreement, which is pending approval by the IMF’s Executive Board, aims to capitalize on the macroeconomic stability Pakistan has achieved over the past year.
“The IMF program will help bring macroeconomic stability,” stated the minister. “Under this program, we need to ensure structural reforms that are essential for sustainable development.”
Minister Aurangzeb outlined the necessity of instituting wide-ranging reforms in key areas such as public finance, energy, and government institutions.
“There is a need to bring sustainability in public finance, energy, and government institutions. Our focus will be on strengthening public finances through fiscal consolidation, broadening the tax base, and removing exemptions while ensuring critical development and social spending,” he said.
He further commented that the government will introduce structural reforms in the coming years.
Earlier today, it was announced that a new staff-level loan agreement has been reached between Pakistan and the International Monetary Fund (IMF) under which the country will receive $7 billion over 37 months. The final approval of the loan will be given by the IMF Executive Board.
In a statement issued by IMF’s Mission Chief to Pakistan Nathan Porter, “The Pakistani authorities and the IMF team have reached a staff-level agreement on a comprehensive program endorsed by the federal and provincial governments, that could be supported by a 37-month Extended Fund Arrangement (EFF) in the amount equivalent to SDR 5,320 million (or about US$7 billion at current exchange rates).”
It further said that the agreement was subject to approval by the International Monetary Fund’s Executive Board and timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.