KARACHI: Pakistan is on the brink of securing its 24th bailout of US$7 billion from the International Monetary Fund (IMF) on September 25, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said Friday.
Speaking at the 21st Annual Excellence Awards hosted by CFA Society Pakistan, Aurangzeb announced that a US$7 billion program is expected to be finalised in the upcoming IMF Board meeting scheduled for September 25, 2024.
The Finance Minister expressed optimism that this could be Pakistan’s last IMF program, provided the country implements the agreed structural changes. “I urge everyone to read this IMF agreement, which will be made public on September 25,” Aurangzeb stated, claiming that his five predecessors had been unable to secure such a good deal with the global lender.
New IMF programme going to be the last one if reforms put in place: Aurangzeb
Highlighting the need for economic transformation, Aurangzeb emphasised, “We need to change the basic DNA of our import-based economy to achieve GDP growth beyond 4 percent.” He outlined key aspects of the latest IMF agreement, including maintaining a tax-to-GDP ratio above 13 percent and initiating reforms in state-owned enterprises and the energy sector. To achieve the ambitious 40 percent tax growth target, the government plans to digitalize the taxation system, reducing human interaction and enhancing transparency.
Aurangzeb also mentioned efforts to ensure proper revenue collection from under-taxed and untaxed sectors. He revealed plans for further government restructuring, stating that five more ministries would be identified under a rightsizing initiative. He also advocated for public-private partnerships in Public Sector Development Program (PSDP) projects.
Aurangzeb stressed the importance of finding import substitutions and attracting Foreign Direct Investment (FDI) in export-driven projects. He noted that the agriculture and IT sectors would receive special focus for economic growth.
Earlier, Mohammad Shoaib, CFA, Founding President of CFA Society Pakistan in his opening remarks highlighted that Pakistan has produced over 1,000 CFA Charter-holders since society was formed in 2002. He added that CFA charter is globally considered as gold standard in investment management. Sajjad Anwar, CFA, President CFA Society Pakistan also spoke.
Copyright Business Recorder, 2024