Pakistan’s Finance Minister Aurangzeb Confident About IMF Loan Programme

Pakistan’s Finance Minister Muhammad Aurangzeb expressed optimism about securing an extended loan programme with the International Monetary Fund (IMF), which he believes will contribute to the country’s economic stability. He and Prime Minister Shehbaz Sharif hope this will be the last IMF programme.

At the end of the fiscal year 2023-24, Aurangzeb addressed a press conference in Islamabad, emphasizing the importance of macroeconomic stability. He highlighted that Pakistan has received USD 1.4 billion in foreign investment, including USD 1 billion from the World Bank for the Dassu hydroelectric project and USD 400 million from an international financial institution for Pakistan Telecommunications Ltd.

Pakistan President Asif Zardari approved the government’s tax-heavy Finance Bill 2024, which has faced criticism from opposition parties, especially the Pakistan Tehreek-e-Insaf (PTI) and coalition ally Pakistan Peoples Party (PPP). The government extended exemptions in specific sectors while announcing new tax measures to generate additional revenue to meet IMF criteria.

Opposition lawmakers, particularly from the PTI, criticized the budget, with opposition leader Omar Ayub Khan calling it “economic terrorism against the people.” Despite the criticism, Pakistan is in talks with the IMF for a loan of USD 6-8 billion. Aurangzeb stressed the importance of ending tax exemptions on certain sectors, as required by the IMF programme.

Aurangzeb assured that the government is working towards achieving a staff-level agreement with the IMF, with discussions ongoing. He expressed confidence that the agreement would be reached, possibly in July.