All matters with the IMF have been resolved smoothly: Finance Minister Muhammad Aurangzeb
Says these matters will be finalized at the IMF board meeting during this month
ISLAMABAD ( WEB NEWS )
Minister for Finance and Revenue Senator Muhammad Aurangzeb says Pakistan is moving towards development after achieving economic stabilization.
In a statement issued on Thursday, Muhammad Aurangzeb said all matters with the International Monetary Fund (IMF) have been resolved smoothly.
The Finance Minister expressed gratitude to Prime Minister Muhammad Shehbaz Sharif’s team, the IMF negotiating team, and the relevant institutions, for their crucial role in this regard.
The Finance Minister said these matters will be finalized at the IMF board meeting during this month. He said the reduction in the policy rate will increase investment and business activities in the country.
The Finance Minister also noted that the rise in economic activities will create job opportunities.
“We are very happy to share that the board meeting is scheduled to take place on September 25 [to discuss the approval of $7 billion EFF agreement reached with Pakistan],” IMF’s spokesperson Julie Kozack said while addressing a press briefing on Thursday.
“This is following Pakistan obtaining the necessary financing assurances from its development partners. The new EFF arrangement follows the successful implementation of the 2023 nine-month standby arrangement,” the spokesperson noted.
Kozack said that the Pakistani authorities acknowledged that the permanent implementation of the new extended fund facility was essential to pave way for sustainable development.
She further said that consistent policymaking has supported economic stability in Pakistan, most notably a resumption of growth, significant disinflation, and a significant increase in the country’s international reserves.
Ahead of the IMF’s statement, the prime minister termed the progress with IMF on the bailout “good” and praised the friendly countries support in this regard.
“We have to get rid of debts […] Pakistan must stand on its own feet,” the prime minister stressed while addressing the federal cabinet meeting, hoping that the forthcoming IMF package would be the country’s last.
Meanwhile Prime Minister Mian Muhammad Shehbaz Sharif said that the friendly nations have once again extended their support as he refused to divulge into details. “They have repeated the history and supported Pakistan.”
However, he regretted that Pakistan was a nuclear country and “repeated requests for loans will decrease its importance”.
The premier said that the government was making efforts to secure the IMF bailout package, assuring “good progress” in talks with the global lender.
He also lauded the announcement by the State Bank of Pakistan to slash the policy rate by 2%, calling it a step to boost investors’ confidence. He hoped that the policy rate will be slashed to single-digit, just like inflation rate.