After Fitch, Aurangzeb apprises Moody’s reps on IMF deal, economic reforms

Finance Minister Muhammad Aurangzeb Tuesday briefed Moody’s Ratings representatives about Pakistan’s Staff-Level Agreement (SLA) with the International Monetary Fund (IMF), and discussed ongoing reforms in the energy sector and State-Owned Enterprises, which include efforts towards “privatisation and rightsizing to enhance operational efficiency and governance,” the Finance Division said in a statement.

During a virtual meeting via Zoom, the finance minister highlighted the positive impact of the nine-month Stand-By Arrangement with the IMF on Pakistan’s macroeconomic indicators.

The IMF said earlier this month that it had reached an SLA with Pakistan for a $7-billion, 37-month loan programme aimed at cementing stability and inclusive growth.

Aurangzeb apprises Fitch representatives about IMF deal, reform measures for stable growth

The IMF said the new Extended Fund Facility (EFF) was subject to approval by its Executive Board and obtain “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”

As part of the new programme, Aurangzeb told Moody’s representatives that Pakistan aims to increase revenues by 1.5% of GDP in FY 2025 and by 3% over the next three years.

He told Moody’s representatives that the government aims to achieve a primary surplus of 1% of GDP for FY 2025.

The minister also talked about Pakistan’s $9.4 billion foreign exchange reserves, stock exchange performance, 12.6% inflation in the CPI in June 2024, and a 7.7% rise in foreign remittances.

He informed Moody’s Ratings that more than 150,000 retailers have registered as first-time taxpayers.

IMF, Pakistan reach staff-level agreement on $7bn Extended Fund Facility

Aurangzeb informed the rating agency about multilateral institutions’ growing confidence in financing projects in Pakistan.

The representatives from Moody’s Ratings appreciated the comprehensive briefing and expressed confidence in Pakistan’s economic trajectory, supported by robust fiscal reforms and strategic initiatives.