Finance Minister Expects to Get Much Bigger IMF Program Before End of FY24

Finance Minister Muhammad Aurangzeb on Friday expressed hope that Pakistan will sign a new and much bigger agreement with the International Monetary Fund (IMF) before the end of fiscal year 2023-24. Addressing a gong ceremony at the Pakistan Stock Exchange (PSX), the Finance Minister briefly discussed the successful completion of last week’s IMF review and hinted at much bigger engagements with the Washington-based lender in the future. Aurangzeb outlined various initiatives including the restructuring of State-Owned Enterprises, privatization, energy sector reforms, and tax reforms. The Minister began by noting positive signs in the economy for 2024, pointing to improvements in key economic indicators. He also underscored the Finance Ministry’s collaborative efforts with the Law Ministry and the Federal Board of Revenue (FBR) to address tax revenue leakage and broaden the tax base. He lauded the private sector for driving the economy and appreciated its contribution to economic development and pledged support to help create a conducive regulatory environment in collaboration with the Securities and Exchange Commission of Pakistan (SECP) and Self-Regulatory Organizations (SROs). Aurangzeb emphasized the government’s commitment to enhancing market efficiency, transparency, and investor protection within the capital market. He announced plans for the Ministry of Finance to collaborate with the capital market to facilitate access to capital for small and medium enterprises (SMEs). Recognizing the importance of Chinese investment, the Minister applauded Chinese partnership and stakeholding in Pakistan’s capital market. He stressed the significance of increased cooperation between PSX and Chinese exchanges for the economic development of Pakistan and the mutual interests of both countries.