IMF Stand-By Agreement has been successfully completed. FM Aurangzeb
ISLAMABAD ( WEB NEWS )
Federal Minister for Finance, Muhammad Aurangzeb has announced that the current International Monetary Fund (IMF) programme will be Pakistan’s last. Macroeconomic stability is not a destination but a pathway, emphasizing that the IMF Stand-By Agreement has been successfully completed. He announced a 29% increase in exports, a significant improvement in the stock market, and a reduction in inflation, leading to a decrease in the policy rate. Speaking at a press conference in Islamabad, he highlighted that the country’s economy is on a positive trajectory, with an increase in foreign exchange reserves and a reduction in inflation.
Minister Aurangzeb praised the leadership of the Prime Minister, under whose direction the IMF program was approved. He noted that inflation has now decreased to single digits due to the government’s policies, and exports in the IT sector have seen significant growth. The caretaker government played a crucial role in the successful completion of the IMF program.
He further mentioned that meetings with IMF and World Bank officials were successful, and Pakistan is now moving towards boosting exports. The Pakistan Stock Exchange is performing well, and there has been an increase in direct foreign investment. The policy rate has been reduced by 4.5%, and all due payments, including a $2 billion profit payment in June, were made on time. The reduction in inflation has contributed to the lowering of the policy rate.
The minister also acknowledged the need to meet the nation’s expectations and stressed the importance of increasing tax revenue. He announced the decision to abolish six ministries, merge two federal ministries, and implement reforms in public institutions. The government is also focusing on increasing the number of tax filers, with 723,000 new filers joining the tax net this year. Non-filers will be restricted from purchasing cars and property. Additionally, only registered wholesalers will be allowed to buy goods from production units, and utilities for non-registered entities may be blocked.
Aurangzeb highlighted two major challenges facing Pakistan: the population growth rate, which is unsustainable at 2.5%, and climate change, which requires urgent preparation and adaptation measures.