ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Thursday that the government wants investment and not aid from the friendly countries and added the International Monetary Fund (IMF) Executive Board would approve US$7 billion Extended Fund Facility (EFF) for Pakistan by the end of this month.
Talking to media after the ground-breaking ceremony of the Securities and Exchange Commission of Pakistan (SECP) new head office building, the minister, in response to a question that why friendly countries appear reluctant to support Pakistan, said that “Pakistan wants investment from friendly countries and not aid”. About issuance of Panda Bond, the minister said that things are in progress.
Earlier, speaking at the ceremony, the minister said that the State Bank of Pakistan (SBP)’s policy rate is a bit down and termed it direct manifestation of macroeconomic stability.
The economic team, he said would continue to move forward with this macroeconomic stability agenda under the leadership of prime minister because this is important as stabilisation would lead to growth.
IMF, Pakistan reach staff-level agreement on $7bn Extended Fund Facility
He said that Staff Level Agreement (SLA) would go to the executive board for final approval so that under the fund umbrella this time around Pakistan undertakes the structural reforms to make the IMF programme as the last one for Pakistan. He said that to make it the last IMF programme for the country, on energy, taxation, SOEs and Privatisation, the country has to move forward with regard to reforms.
The minister said that the country does not have room anymore to differ on this agenda. The minister said that all the insurance companies in the public sector will be handed over to the private sector.
He further stated that the government would be there to provide policy framework and policy continuity and the private sector has to lead this country. He said, “if we have to make this fund last programme, there has to be road to the market and the market has to be through export-led growth, it has to be through foreign direct investment which comes in for export led industries.
The minister added that by borrowing from aboard the country cannot afford currency mismatches and the current problem is because of the currency matches.
He said that if the country has to borrow from abroad it has to be for the projects, which in turns produces foreign currency for the country.
He said that SECP role becomes very important for capital market, he said that there is so much dependence and the government has to bring fiscal discipline to reduce the borrowing. He said that idea of the building was conceived 24 years ago and asked the SECP to complete the building in one year and reaffirmed the Ministry of Finance’s full support to the SECP.
Deputy Prime Minister and Foreign Minister Ishaq Dar stated that the establishment of SECP’s independent building was an important step towards the financial autonomy of the institution and shared that the plot of land for the head office building was approved by the government in 2017.
Further, he remarked that the SECP will continue to play an important role in the development of the country’s economy, and pledged the government’s full support in introducing key reforms to the SECP’s regulatory framework. He also highlighted Pakistan’s potential for economic development and market growth, citing billions of dollar worth of proven minerals, urging the youth to have hope in the resilience and richness of Pakistan’s potential.
He and finance minister laid the foundation stone of the SECP new head office building.
Chairman SECP Akif Saeed and other senior officials were present for the special occasion.
Chairman Saeed announced that the SECP is introducing radical reforms in the regulatory frameworks to facilitate ease of doing business and investment processes.
Copyright Business Recorder, 2024