Pakistan eyes another IMF bailout
\nAurangzeb says Pakistan knows what it needs to keep the economy steady which is implementation
\nWASHINGTON
\nFinance Minister Muhammad Aurangzeb said that Pakistan needs two to three years to implement structural reforms prescribed by the International Monetary Fund (IMF).
\nSpeaking at the Atlantic Council think tank in Washington, Aurangzeb said that Pakistan doesn\u2019t need more policy prescriptions as it knows what it needs to keep the economy steady which is implementation of reforms.
\n\u201cWe have known the what and why not for years but for decades. […] It\u2019s time for us to actually start moving the execution of these aspects and why we\u2019re looking for a larger and extended program, so once we get into the execution we will need a two to three-year time period to go through the structural reforms,\u201d said Aurangzeb.
\nThe finance minister is currently in the US to hold talks with the global lender for a new bailout package and attend the World Bank meetings.
\nAurangzeb said that if Pakistan \u2014 which has entered 24 programs with the IMF \u2014 doesn\u2019t go through the structural reforms, unfortunately, the country would still be looking for another program.
\n\u201cThe purpose is to agree on the priorities with the Fund and try to get the EFF in place as quickly as we can but these are just preliminary discussions,\u201d said the finance minister.
\nPakistan entered in \u2018much better\u2019 shape in 2024 economically
\nSpeaking about the country\u2019s economic outlook, Aurangzeb said that Pakistan entered this year in much better shape and a lot of it has to do with the nine-month Stand-By Arrangement (SBA) programme.
\nHe said that the overall GDP was moving in the right direction, agriculture GDP and services sector are doing well inflation has come down from the peak of 37-38% and the exchange rate is stable, adding that all of this has moved the country in the right direction.
\n\u201cNow we need permanence in the macroeconomic stability hence the discussion with IMF on a larger and extended program. We are also going to be focused on the growth aspects of it because when you are talking to Fund or you are in a Fund program, it\u2019s only about stabilisation.\u201d
\nAurangzeb said that the ownership and the sponsorship of the next program comes from Prime Minister Shehbaz Sharif as he has been \u201cquiet keen and vocal\u201d that Pakistan is going to go in another program to run with the structural reforms agenda.
\nMinistry to bring under-taxed, untaxed sectors into net
\nWhen asked how is the Finance Ministry going to achieve close to balance budget, FinMin Aurangzeb said that they need to bring the under-taxed and untaxed sectors into the net.
\nWhen it comes to revenue and tax authority, Pakistan needs to go end-to-end digitalisation of the tax authority to minimise human intervention, he added.
\n\u201cIts not just about revenue, its about transparency and client experience which is going to bring trust and confidence back into the tax authority.\u201d
\nHe added that Pakistan needs to move towards public-private partnerships at federal and provincial levels.
\nWhen asked about Pakistan\u2019s priorities with reforms at the IMF and World Bank, Aurangzeb Pakistan deals with the effects of climate change and financial inclusivity.
\n\u201cWe are dealing with adaptation and financing and to the extent that these institutions come in to help countries like Pakistan from inclusive growth perspective and climate change perspective. Our interests are going to be very well aligned.\u201d
\nWASHINGTON: Finance Minister Muhammad Aurangzeb said that Pakistan needs two to three years to implement structural reforms prescribed by the International Monetary Fund (IMF).
\nSpeaking at the Atlantic Council think tank in Washington, Aurangzeb said that Pakistan doesn\u2019t need more policy prescriptions as it knows what it needs to keep the economy steady which is implementation of reforms.
\n\u201cWe have known the what and why not for years but for decades. […] It\u2019s time for us to actually start moving the execution of these aspects and why we\u2019re looking for a larger and extended program, so once we get into the execution we will need a two to three-year time period to go through the structural reforms,\u201d said Aurangzeb.
\nThe finance minister is currently in the US to hold talks with the global lender for a new bailout package and attend the World Bank meetings.
\nAurangzeb said that if Pakistan \u2014 which has entered 24 programs with the IMF \u2014 doesn\u2019t go through the structural reforms, unfortunately, the country would still be looking for another program.
\n\u201cThe purpose is to agree on the priorities with the Fund and try to get the EFF in place as quickly as we can but these are just preliminary discussions,\u201d said the finance minister.<\/p>\n","protected":false},"excerpt":{"rendered":"
Pakistan eyes another IMF bailout Aurangzeb says Pakistan knows what it needs to keep the economy steady which is implementation WASHINGTON Finance Minister Muhammad Aurangzeb said that Pakistan needs two to three years to implement structural reforms prescribed by the International Monetary Fund (IMF). Speaking at the Atlantic Council think tank in Washington, Aurangzeb said […]<\/p>\n","protected":false},"author":2,"featured_media":400473,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-400678","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business"},"yoast_head":"\n