New Finance Minister targets IMF deal and economic reforms

Muhammad Aurangzeb, the newly appointed Finance Minister of Pakistan, has declared a focused agenda centered on implementing critical reforms and securing a new agreement with the International Monetary Fund (IMF) to navigate the country’s economic challenges.

Aurangzeb, a former executive at Habib Bank, was officially inaugurated in a ceremony at the Presidency on Monday.

Highlighting the urgency of the situation, Aurangzeb stated, “There’s no time for debate or delay; our focus is on immediate action.”

His strategy includes embracing the policies introduced by the caretaker government, which he believes have positively influenced Pakistan’s economic indicators.

Under Prime Minister Shehbaz Sharif’s previous administration, Pakistan negotiated a $3 billion loan package with the IMF, a move Aurangzeb credits for averting a more severe economic crisis.

With this package set to expire, the Finance Minister announced plans to negotiate a new three-year loan agreement, aiming for at least $6 billion to support the economy.

Aurangzeb also emphasized the importance of a robust privatisation strategy to relieve fiscal pressure, aligning with the Prime Minister’s directives.

Despite his new role, he acknowledged his limited familiarity with recent reforms by the Federal Board of Revenue but expressed his commitment to enhancing revenue collection and implementing economic policies effectively.

Further discussions with the IMF are anticipated to begin within the week, as Pakistan seeks to finalize the current Standby Arrangement Programme and explore a larger Extended Fund Facility.

This effort includes potentially increasing the funding through climate financing, aiming for a substantial boost to the country’s financial support from the IMF.

As Aurangzeb prepares to lead Pakistan’s economic strategy, he brings experience from his tenure at HBL and a commitment to driving financial and economic development for the country.