Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, emphasized the need for structural reforms to make the Extended Fund Facility (EFF) with the International Monetary Fund (IMF) the country’s last program.
He underscored the importance of privatization, export-led growth, and foreign direct investment (FDI) for sustainable macroeconomic stability.
Speaking at the Ground Breaking Ceremony of the Securities and Exchange Commission of Pakistan (SECP) Head Office Building, the minister announced that a Staff Level Agreement (SLA) has been signed with the IMF and will be submitted to the fund’s board for final approval. He stressed that securing the fund should come with comprehensive structural reforms.
“We need to ensure this is our last IMF program by implementing reforms in taxation, energy, and state-owned enterprises (SOEs) privatization,” said Aurangzeb.
He noted that Fitch’s upgrade of Pakistan’s credit rating and the State Bank of Pakistan’s (SBP) policy rate reduction are signs of the macroeconomic stability pursued under Prime Minister Shehbaz Sharif’s leadership.
The minister emphasized the necessity of permanent stabilization to facilitate growth. He also highlighted the cabinet committee’s decision to transfer all public sector insurance companies to the private sector, advocating for private sector leadership in the economy.
Aurangzeb stressed the need for export-led growth and attracting FDI, particularly in export-driven industries, to avoid currency mismatches caused by borrowing. He called for focusing on international capital markets to diversify funding sources and reduce reliance on banks.
The minister also underlined the role of the SECP in ensuring fair, transparent, and accountable markets, aiming for modernity, efficiency, and transparency through capital markets.
The idea for the SECP building, conceived 24 years ago, is now moving forward with the hope of timely completion.
