Pakistan’s Finance Minister Forecasts Positive Economic Outlook at Islamabad Business Summit

Dubai | April 25, 2024 | 2 | Finance or Economy

During the Leaders In Islamabad Business Summit, Finance Minister Muhammad Aurangzeb shared promising updates about Pakistan’s economic progress. He projected a significant rise in the country’s foreign exchange reserves, estimating them to potentially reach $9 to $10 billion by June’s end. This forecast marks a notable improvement compared to previous figures, indicating ongoing efforts to strengthen Pakistan’s financial standing.

Aurangzeb stressed the importance of Pakistan’s engagement with the International Monetary Fund (IMF), highlighting the Stand-By Agreement (SBA) as a crucial element of the nation’s economic strategy. He emphasized that while the IMF serves as a means to an end, it plays a pivotal role in supporting Pakistan’s economic stability and reform initiatives. The finance minister underscored the necessity of having a clear roadmap for navigating out of IMF loans, emphasizing transparency and strategic planning in this regard.

Furthermore, Aurangzeb addressed the issue of privatization, advocating for the divestment of state-owned enterprises (SOEs) to enhance efficiency and alleviate financial burdens on the government. He urged ministries and operating units to expedite the privatization process, reiterating the government’s stance that it has “no business in being in business.”

Regarding future engagements with the IMF, Aurangzeb expressed optimism about reaching a staff-level agreement by June or July. He highlighted the alignment of priorities between Pakistan and the IMF, indicating confidence in successful negotiation outcomes. Additionally, the finance minister provided insights into the potential release of funds under the SBA, signaling progress in the review process and anticipated approval by the IMF Executive Board.

Overall, Aurangzeb’s remarks shed light on Pakistan’s economic trajectory, emphasizing the government’s commitment to fiscal responsibility, structural reforms, and collaboration with international financial institutions to ensure sustainable growth and financial stability.