Finance Minister Muhammad Aurangzeb was happy to express his satisfaction on Friday on the "positive" responses from China, Saudi Arabia, and the United Arab Emirates concerning Pakistan's gross financing needs for the approval of its $7 billion International Monetary Fund (IMF) programme.
Aurangzeb noted that discussions were ongoing with Saudi Arabia, the UAE, and China to secure the required financing, following his recent trip to China to negotiate energy sector debt reprofiling. Earlier this week, Aurangzeb stated that progress with the IMF was promising, with hopes for board approval in September for the new loan programme.
During a press briefing, he highlighted constructive dialogues with commercial banks regarding funding, attributing their positive response to improvements in the country's ratings by international agencies. He mentioned ongoing discussions with Dubai Islamic and Al-Mashreq Bank, and described last week's conversation with the Saudi finance minister as encouraging.
Aurangzeb reiterated that the reactions from China, Saudi Arabia, and the UAE were favorable, and these countries would coordinate with the IMF through their executive directors. The finance minister indicated that Pakistan requires $3 billion in external financing over the 37 months of the IMF program, with $2 billion needed in the current year.
Addressing concerns regarding delays in the IMF board's approval of the package, Aurangzeb acknowledged public skepticism, but remained confident that the IMF board would approve the programme, expressing hope for a decision next month. On the topic of tax collection, the minister affirmed the government's commitment to collecting taxes from traders while providing them with facilities using the collected funds.
He assured that all stakeholders were consulted regarding the tax collection initiative.
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