Finance Minister Muhammad Aurangzeb agrees to continue economic reforms for stability, sources say

Faisal Sheikh

ISLAMABAD: Pakistan on Thursday “expressed its intention” for a fresh loan from the International Monetary Fund (IMF) as the two sides began the final review meeting on the $3 billion stand-by arrangement (SBA), a private news channel reported citing sources.

The four-day review began today, and if successful, will release a final tranche of around $1.1 billion secured by Islamabad under a last-gasp rescue package last summer, averting a sovereign debt default.

The IMF review mission, headed by Nathan Porter, would hold further talks with Pakistani authorities on the new loan programme, the sources said.

During the meeting, the Fund delegation congratulated Muhammad Aurangzeb on assuming the office of the finance minister.

Meanwhile, Aurangzeb expressed his commitment for making a positive progress with the lender, the sources said, adding that the IMF team appreciated the caretaker government’s efforts in implementing the programme.

The sources said that the finance minister agreed to continue the economic reforms.

“Pakistan assured the IMF mission of implementing all priority points,” the sources added.

The government also presented a plan to the delegation seeking to increase the Federal Board of Revenue (FBR)’s revenues and reduction in circular debt.

Earlier, the finance ministry said that Pakistan has met all structural benchmarks, qualitative performance criteria and indicative targets for successful completion of the IMF review.

The ministry hoped for a successful IMF staff level agreement after the appraisal.

On Tuesday, Finance Minister Muhammad Aurangzeb shared that the government would engage with the Washington-based lender for a “large and long programme” under the Extended Fund Facility (EFF).

In his first media briefing after assuming charge, the newly appointed minister laid out his plan for economic stabilisation.

The minister also hinted at the reduction in the policy rate but added that the Monetary Policy Committee (MPC) is the domain of the State Bank of Pakistan (SBP), which currently enjoys autonomy.