FM Continues to Promote Pakistan’s Investment Potential At IMF/WB Meetings

Minister for Finance and Revenue Muhammad Aurangzeb continued his engagements on the fourth day of his visit to Washington DC to participate in the Annual Meetings 2024 of the World Bank Group and IMF. Finance Minister attended a series of investor forums organized by Citibank, Standard Chartered, and JP Morgan. He briefed investors about the economy’s performance for the last fiscal year and expressed satisfaction that all economic indicators were moving in the right direction. Aurangzeb highlighted important reforms in the taxation, energy, SOEs, privatization, and right-sizing of the government and especially talked about the role of the provincial governments in increasing the tax-to-GDP ratio and the National Fiscal Pact signed by the Federal Government. He also touched on the reforms being carried out in the FBR in the areas of people, process, and technology and addressed questions from the investors regarding the Sovereign Wealth Fund, Special Economic Zones, and Power Purchase Agreements (PPAs) being negotiated with Chinese IPPs. Finance Minister held a meeting with the President of the Islamic Development Bank Dr. Muhammad Sulaiman Al Jasser. He acknowledged IsDB’s role as a reliable partner in Pakistan’s progress and appreciated its financing in diverse sectors such as energy, transportation, education, and health. He especially talked about the visit of the Saudi Minister for Investment to Pakistan for b2b engagements with the private sector. He lauded IsDB’s investment in Mohmand dam, along with other members of the Arab Coordination Group which could serve as the template for co-financing of similar and even bigger projects in the future. Finance Minister had a luncheon meeting with the leadership and members of the US Pakistan Business Council (USPBC). He acknowledged USPBC’s contributions to deepening trade and investment ties between Pakistan and the United States. He informed the participants that the presence of more than 80 US enterprises in Pakistan was a testimony to the profit potential of a 240 million strong market. He invited US firms to benefit from the Government’s investment-friendly policies and one-window facility provided by the Special Investment Facilitation Council (SIFC). He recalled the Prime Minister’s invitation for the USPBC to lead a business delegation to Pakistan this year which would provide an opportunity to explore mutually beneficial partnerships in Pakistan. In the end, he addressed the questions from US companies operating in Pakistan and assured them of full support. The Finance Minister met with the representatives of JP Morgan Bank. He provided an overview of recent improvements in Pakistan’s economic outlook on the back of the recently concluded SBA. He underlined the criticality of EFF in lending permanence to macroeconomic stability and executing the structural reforms. He highlighted important reforms in the areas of taxation, privatization, and overhauling of SOEs and expressed the resolve to tap into International Capital Markets (ICM) through the issuance of the inaugural Panda Bond. Finance Minister held a meeting with Anneliese Dodds, Minister of State for Development, Women and Equalities of the United Kingdom. He appreciated the long-lasting partnership between the two countries in the development sector. He welcomed the contribution of USD 120 million to IFC’s Climate Investment Funds for Pakistan. He informed that the State Bank had cleared the backlog of all cases of repatriation of profits and dividends. He invited UK companies to invest in the agriculture, IT, mines, and minerals sectors to avail themselves of the opportunities that are emerging because of the improved investment climate. The Finance Minister met with Anna Bjerde, Managing Director of Operations at the World Bank. He discussed Pakistan’s development priorities supported by the Country Partnership Framework (CPF). He briefed the Managing Director about the Joint Domestic Resource Mobilization Initiative (JDRMI) being launched with the support of the World Bank and IMF. He welcomed the decision of the Board not to levy any commitment fee for four years for PforR and Investment Project Financing (IPF) instruments. He appreciated that the Bank was considering a grant facility for project preparation. He noted with satisfaction that IDA replenishment was proceeding satisfactorily. While appreciating the recent improvements in the disbursements, it was agreed that efforts will continue to sustain the continued improvements. In the end, he requested the support of the Bank to organize capacity-building workshops for implementing agencies as well, in the quest to ensure better project preparation that will lead to improved implementation. Finance Minister participated in the Small Talks Forum hosted by the Bank of America (BoFA) Securities. Providing a comprehensive picture of the Government’s macroeconomic stabilization efforts and performance of the economy over the last year, he reaffirmed the commitment of the government to all reforms under the EFF including in taxation, energy, privatization, and SOEs. He informed that reforms were underway in the FBR in all three areas of people, process, and technology and resolved that the government would tap into international capital markets in due course. In the end, he invited partnerships in Pakistan’s agriculture, IT, mining, and renewable energy sectors. Later in the day, the Finance Minister attended a reception hosted by Ajaypal Singh Banga, President of the World Bank Group, and presented him with framed photographs of Sikh Gurdwaras in Pakistan.