Pakistan committed to implementing IMF program: Finance Minister

Fin Min Mohammad Aurangzeb highlights Pakistan's challenges from population growth and climate change disasters.

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Finance Minister Mohammad Aurangzeb has stated that Pakistan is dedicated to implementing the International Monetary Fund (IMF) program, with ongoing economic reforms and efforts to simplify the business process.

Speaking at an event in the federeal capital Islamabad, the fiinance minister shared that Pakistan’s economy is heading in the right direction.

He pointed to significant progress over the past 14 months, particularly in reducing the current account deficit and bringing inflation to its lowest in 78 months.

Aurangzeb emphasised the critical role the private sector plays in Pakistan's economic recovery and assured that the government will provide policy guidelines and full support to businesses, Express News reported.

He further highlighted the significance of the housing sector in the economy but noted that the country faces challenges due to unsustainable population growth and vulnerability to climate change-induced disasters.

Despite these challenges, he emphasized that the government remains firmly committed to implementing the IMF program as part of the nation’s strategy to stabilise the economy.

The finance minister concluded by stressing that strengthening the foundations of economic stability remains a top priority, with the government continuing to push for reforms and private sector engagement to drive growth.

Previously finance minister admitted on Monday that there were hiccups in the implementation of the International Monetary Fund (IMF) programme but said that the government remained resolute in its resolve to complete the $7 billion programme.

The finance minister made the statement in a briefing to the National Assembly Standing Committee on Finance, amid opposition's demand to also disclose the assets of the military and the judiciary – which is currently limited to only civil servants – as part of the IMF condition.

The ministry also revealed to the committee that it too failed to meet an IMF condition on debt maturity, further lengthening the queue of the departments that have so far failed to meet some of the IMF conditions.

The Federal Board of Revenue (FBR) and the provinces were already falling behind the IMF deadlines, which led to a sudden visit by the IMF staff to Pakistan.

"There are going to be hiccups but our administration is clear that we are going through it and also want to take along the coalition partners", the finance minister told the committee on the status of the IMF deal before seeking to shut down the doors to the media.

IMF reveals stringent conditions for second loan tranche

Government has initiated a series of tough measures, including asset disclosures by civil servants and their families, to meet the conditions for securing a $1.1 billion tranche from the International Monetary Fund (IMF), Express News reported on Monday.

The approval for the second instalment of the IMF’s Extended Fund Facility (EFF) comes with 39 strict conditions.

These include the mandatory disclosure of assets by civil servants and their families, the elimination of tax amnesties and exemptions, and the issuance of a governance and corruption assessment report.

According to sources, the IMF has set benchmarks that include maintaining foreign exchange reserves equivalent to three months of import bills, achieving fiscal targets, and right-sizing the public finance structure.

Other major reforms mandated by the IMF include keeping the difference between the open market and interbank exchange rates within 1.25%, and ensuring that the State Bank of Pakistan’s foreign exchange reserves reach $8.65 billion by the end of the fiscal year.