Finance Minister Muhammad Aurangzeb has announced plans to engage with the International Monetary Fund (IMF) for a “large and long program” under the Extended Fund Facility (EFF).
In his first media briefing since assuming office, Aurangzeb outlined strategies for economic stabilization, acknowledging that price hikes remain a significant concern for the public. He expressed optimism regarding receding inflation trends and hinted at a potential reduction in the policy rate, emphasizing the autonomy of the State Bank of Pakistan (SBP) in such decisions.
Aurangzeb highlighted the importance of attracting foreign investment through platforms like the Special Investment Facilitation and emphasized the need for viable projects to replace reliance on deposits from friendly nations. He also mentioned plans to address structural issues, including tax reforms, digitization in the Federal Board of Revenue (FBR), and restructuring State-Owned Enterprises (SOEs).
Aurangzeb confirmed discussions with the IMF scheduled for March, aiming to secure the release of the last tranche under the Standby Arrangement (SBA) program and initiate talks on a new bailout package under the EFF.
He stressed the necessity of transitioning from policy formulation to implementation to achieve macroeconomic stability and foster economic growth. Additionally, Aurangzeb emphasized the importance of privatization and public-private partnerships (PPPs) in driving economic development.
