Negotiations on a new multi-billion-dollar loan deal with the IMF have started, Finance Minister said
The new loan program will be under the reform agenda for economic development of Pakistan
The program with the IMF has restored market confidence in Pakistan
Pakistan wants to increase trade relations with 2 major global economies
America, our largest trading partner, has always supported Pakistan in terms of investment
Huge investment programs through CPEC are also part of Pakistan’s policy
The government is now seriously looking at privatization of loss-making enterprises, an interview with Muhammad Aurangzeb
Washington ( Web News)
Federal Finance Minister Muhammad Aurangzeb has said that negotiations on a new billion dollar loan agreement with the IMF have started. The new loan program will be under the reform agenda for Pakistan’s economic development. The program has restored market confidence in Pakistan, Pakistan is looking to increase trade relations with 2 major global economies, the US is our largest trading partner and has always supported Pakistan in terms of investment, CPEC. Huge investment programs are also part of Pakistan’s policy, the government is seriously considering the privatization of loss-making enterprises. In an interview given to a foreign news organization in Washington, Finance Minister Muhammad Aurangzeb said that negotiations have been started with the International Monetary Fund (IMF) on a new agreement on a billion dollar loan for the economic reform program. He said that the new loan program will be under the reform agenda for economic development of Pakistan, the last installment of 1.1 billion dollars is likely to be approved by the end of this month under the ongoing program agreement with the IMF. Along with this, Pakistan has also started negotiations for a new long-term multi-billion dollar loan program. He said that the program with the IMF has restored market confidence in Pakistan, successfully completed a 9-month program with the IMF, reports of Pakistan’s development and improvement in the economy are being given by international organizations. Mohammad Aurangzeb said that at present the business climate in the Pakistani market is excellent and due to the restoration of investors’ confidence, we are expecting better results in the current financial year than in the past. It is for this reason that the new government has begun negotiations to join the IMF’s new expansion program for more funds. Regarding the ongoing and future programs with Pakistan, the IMF spokesperson said that the focus of the institution is currently on the implementation of the current standby agreement, which is going to be completed soon, however, in the meantime, the new government formed in Pakistan. It has also expressed interest in a new program, which is likely to have early-level discussions. The Federal Finance Minister said that Pakistan will request at least a 3-year program from the IMF for the full implementation of the economic reform policy. He said that next month, progress will be made in this regard. In response to a question, the Federal Finance Minister said that the government is keen to increase trade relations with two major global economies. He said that America is our biggest trading partner and it has always helped Pakistan in terms of investment. Similarly, huge investment programs through CPEC are part of Pakistan’s policy. He said that the government is now seriously looking at the privatization of loss-making enterprises and the privatization of PIA is at the top of the list. Next month there will be good progress in this regard. We wish to finalize the privatization of PIA by the end of June. Muhammad Aurangzeb further said that steps are being taken to increase tax collections. The experience in the private sector will be used for economic stability, for the development of Pakistan, investment to GDP will also have to be taken up to 15%.