Borrowing can't fix Pakistan's economy: FM Aurangzeb

Emphasising local potential, Finance Minister Aurangzeb warns against relying on foreign borrowing.

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ISLAMABAD:

Finance Minister Muhammad Aurangzeb has stated that the country's economic condition cannot be improved by relying on foreign loans.

Speaking at the inauguration ceremony of the SECP Head Office building in Islamabad, Aurangzeb emphasised the need for immediate reforms in the energy sector to ensure that the ongoing IMF programme is the last.

Aurangzeb highlighted the importance of implementing reforms while remaining within the IMF programme and adhering to privatisation policies.

He stressed that Pakistan cannot enhance its economic situation by depending on external borrowing.

The finance minister also pointed out the need to reduce reliance on banks and foreign borrowing.

He called for increased transparency in economic affairs, where the SECP plays a vital role as the primary regulator.

Aurangzeb further stated that Pakistan must advance through the use of technology, and simplifying the company registration process is a significant step forward.

"Our current economic situation forces us to seek loans for amounts as low as $1 billion," Aurangzeb remarked, adding that Pakistan's domestic market holds significant potential that needs to be harnessed.

Aurangzeb also mentioned that the government would support necessary legislative changes in regulations.

He expressed optimism, noting that Pakistan has started receiving positive economic news, such as an improved rating by Fitch.

The State Bank of Pakistan has reduced the interest rate, and the new IMF loan programme has bolstered global confidence in Pakistan.

Aurangzeb reiterated the government's intention to promote private sector activities and assured that the government would not involve itself in businesses typically run by the private sector.

The prime minister desires the current IMF programme to be the final one for Pakistan.