Finance Minister Muhammad Aurangzeb expresses hope for bailout to be country\u2019s last IMF package
\n Islamabad
\nFinance Minister Muhammad Aurangzeb has said that the country will secure an extended International Monetary Fund (IMF) programme on September 25, The News reported on Sunday. Speaking at the CFA Society of Pakistan\u2019s 21st Annual Excellence Awards, Aurangzeb expressed hope that it will be the country\u2019s final IMF programme. However, he warned that failure to sustain reforms might lead to a 25th programme.
\nHis remarks come as Islamabad reached an agreement with the Washington-based lender on a $7 billion 37-month loan programme in July earlier this year. However, the future of the bailout package is subject to the approval of the Fund\u2019s executive board which is set to convene on September 25 with Pakistan included in its meeting agenda. The country was required to secure external financing of $2 billion from bilateral and commercial lenders as a pre-requisite for the IMF board\u2019s approval.
\nIt is to be noted that Pakistan owes $5 billion to Saudi Arabia in the form of cash deposits, along with 4$ billion and $3 billion from China and the United Arab Emirates (UAE), respectively.
\nSpeaking on the occasion, the finance minister stressed the need for macroeconomic stability and said that Pakistan has previously experimented with various economic models, none of which yielded the desired results.
\nOn pensions, Aurangzeb announced that any new federal government employees would be required to contribute to a defined-contribution pension scheme. He stressed the need for Pakistan\u2019s economic focus to shift from imports to an export-driven model.
\nThe finance minster\u2019s statement comes as the incumbent government is also set to introduce a mini-budget with an aim to generate around Rs650 billion in revenue, primarily by cracking down on tax evaders and increasing general sales tax (GST) on properties, tractors and other items.
\nAccepting another condition tabled by the global lender, the government had agreed to jack up valuation tables for real estate in 42 cities by the end of September 2024 so the Federal Bureau of Revenue (FBR) can notify the revised rates in the coming weeks.
\nThe upcoming mini budget will be introduced after securing approval from Prime Minister Shehbaz Sharif and the federal cabinet.
\nEither the money bill will be laid down in parliament or a presidential ordinance will be promulgated but the final decision will be taken by the government after consulting with its political allies, especially the Pakistan Peoples Party (PPP).<\/p>\n","protected":false},"excerpt":{"rendered":"
Finance Minister Muhammad Aurangzeb expresses hope for bailout to be country\u2019s last IMF package Islamabad Finance Minister Muhammad Aurangzeb has said that the country will secure an extended International Monetary Fund (IMF) programme on September 25, The News reported on Sunday. Speaking at the CFA Society of Pakistan\u2019s 21st Annual Excellence Awards, Aurangzeb expressed hope […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-431388","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-top-news"},"yoast_head":"\n