LAHORE: Federal Finance Minister Muhammad Aurangzeb was hopeful that the International Monetary Fund (IMF) would approve a 37-month, $7 billion loan programme for Pakistan in its board meeting on Wednesday (today).
Speaking via Zoom from New York at the “High-Level Private Sector Investment Dialogue- CPEC II and Region” jointly organised by the Pakistan Regional Economic Forum (PREF) and the Chinese Embassy in Pakistan here on Tuesday, Aurangzeb expressed optimism about Pakistan’s economic stability.
The event was co-chaired by the Chinese Ambassador Jiang Zaidong and was attended by business leaders of Pakistan. “We are confident in our ongoing reform agenda, and economic stability is returning to Pakistan, which will lead to the Fund’s approval of the loan program,” he said.
IMF deal to be made public: Aurangzeb
Aurangzeb extended gratitude to China and Saudi Arabia for their support in meeting IMF requirements and promoting Pakistan’s economic stability, describing them as “all-weather friends” of Pakistan.
The minister highlighted Pakistan’s macroeconomic stability, citing decreased policy rates and Kibor, and over two months’ worth of forex imports. He emphasized the government’s focus on sustainable economic growth, encouraging private sector investment.
According to Aurangzeb it is an opportune time to engage in CPEC II for regional integration, distinguishing it from CPEC I related infrastructure development focus. He assured that Prime Minister Shahbaz Sharif, Minister Ahsan Iqbal, and the cabinet support CPEC II, pledging a favourable policy framework for private sector participation.
The Finance Minister fully supported the approach introduced by PREF to promote private sector led regional projects and transactions. He also extended his government’s full commitment to facilitate the adequate private sector financing through multi-lateral and local resources.
The work on a USD 1.0 billion fund for regional joint ventures have already started by the Pak-China and Saudi-Pak investment companies. In addition, the Finance Minister communicated his resolve to work with China and other regional countries for speedy implementation of CPEC-11 and the overall prosperity and stability in the region.
Addressing the forum, the Chinese Ambassador Jiang Zaidong emphasised the need to strengthen confidence in the development prospects of Pakistan confidence in China-Pakistan relations and in the bright future of mankind. First, we need to strengthen confidence and work hard.
Confidence in the development prospects of Pakistan, confidence in China-Pakistan relations and confidence in the bright future of the mankind.
He emphasised that we must keep the development of the country and the destiny of national development in our own hands. He further stated that in order to strive for practical results, we must consolidate, deepen and expand China-Pakistan cooperation.
Moreover, we need to take the agricultural advantages of neighbouring provinces as an example to discuss the agricultural cooperation between China and Pakistan. Also, Pakistan should offer enhanced mutually beneficial preferential policies for Chinese and regional entrepreneurs.
The Chinese Ambassador stated that current problems in Pakistan’s energy sector were not due to Chinese enterprises or the concept of CPEC but due to Pakistan’s perennial issues in the sector. He pointed out that Pakistan’s energy sector had entered an adjustment phase, while power generation capacity had been enhanced. Pakistan’s energy sector is going through a systemic transition towards gaining more efficiency and price stability.
Former Chairman of Board of Investment (BOI) and Chairman PREF Haroon Sharif, in his welcome remarks highlighted the rapid economic transformation of the Region and the immense opportunities available in Pakistan for economic development.
With overall theme of making connectivity work for the people, he reiterated that Pakistan’s needed a transition from a debt-to-investment economy, by leveraging infrastructure connectivity. This will be done by seeking private sector capital investors from Central Asia, the Gulf and beyond to expeditious implementation of CPEC Phase–II.
Khalid Mansoor, former SAPM on CPEC presented potential projects in the key PREF identified sectors which include climate smart agriculture, energy transition, value-added textile, emerging technologies, and information technology and trade logistics.
Copyright Business Recorder, 2024
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