ISLAMABAD: Pakistan’s finance minister, Muhammad Aurangzeb, has firmly ruled out the possibility of a mini-budget in the near future, following constructive discussions this week with the International Monetary Fund (IMF).
In a television interview, Aurangzeb emphasized the government’s focus on meeting the ambitious Rs. 12.97 trillion tax target, underlining efforts to improve tax enforcement and administration. He also confirmed that the cabinet had approved the National Fiscal Pact, adding that no changes would be made to the National Finance Commission (NFC) framework.
While the finance minister commended the fiscal efforts of Sindh and Khyber Pakhtunkhwa, he also acknowledged setbacks in the privatization of Pakistan International Airlines (PIA).
Aurangzeb’s comments follow the conclusion of a surprise five-day IMF mission, which wrapped up on Friday. During this visit, IMF mission chief Nathan Porter emphasized the need for prudent fiscal policies, increased revenue generation, and reforms in the energy sector. Preliminary findings from the visit will soon be presented to the IMF’s Executive Board.
The IMF also called for reducing state intervention in the economy to boost private sector growth and competitiveness, reaffirming its support for Pakistan’s broader reform agenda.
Despite being relatively basic, this week’s engagement saw the IMF meet with both federal and provincial authorities, the State Bank of Pakistan, and private sector representatives.
