ISLAMABAD: Finance Minister Muhammad Aurangzeb announced that an IMF delegation will visit Pakistan next month.
Speaking informally with the media, the minister said that the IMF team is expected to arrive in Pakistan by the end of September, and that Pakistan is fully prepared for the next economic review.
He added that completion of the next review could lead to the release of a $1 billion third tranche from the IMF. Although national debt has increased by 41%, he said the situation is expected to improve with scheduled repayments. He also noted that a further reduction in interest rates is expected soon, and that electricity prices will also be reduced.
Earlier, addressing a ceremony at the Islamabad Chamber of Commerce, Aurangzeb stated that the economy has stabilized over the past one and a half years, with all key economic indicators showing a positive trend. He noted that the policy rate (interest rate) has been significantly reduced, with more cuts likely, and that the government is taking further steps to improve the economy in the current fiscal year.
He highlighted that the Pakistan Stock Exchange (PSX) has reached its highest level in history, which reflects growing investor confidence, and that there has been a significant increase in new investors. Acknowledging the 41% increase in national debt, he assured that the situation will improve as debt repayments continue.
The minister stressed that the government is implementing a core reforms agenda, and has adopted a “right-sizing” policy to reduce government expenditures. The right-sizing process is ongoing in over 400 departments.
He also noted the important role of traders in the national economy, and stated that privatization of state-owned enterprises will accelerate this year. He praised Owais Leghari and his team for their efforts to improve the energy sector, mentioning that tariff reforms have been initiated for the first time in 78 years, and a task force is working to lower electricity prices, which he said will happen soon.
Aurangzeb emphasised that the burden of taxes cannot fall entirely on salaried individuals. He noted that agricultural income has now been brought into the tax net, and that the government has provided tax relief to salaried people within its available fiscal space. He concluded by saying: “We have no option but to expand the tax net.”
