ISLAMABAD: Finance Minister Muhammad Aurangzeb has expressed confidence that Pakistan is on the verge of finalizing a deal with the International Monetary Fund (IMF). He stated that talks are in the final stages, with no significant obstacles remaining.
In a media briefing on Friday, Aurangzeb confirmed that Pakistan is progressing well toward meeting the IMF’s economic targets, reassuring the public that the discussions are set to conclude positively.
The Finance Minister emphasized Pakistan’s commitment to maintaining fiscal discipline, citing the government’s efforts to stick to the financial framework established with the IMF.
The ongoing discussions are focused on securing the next tranche of funding, which is vital for Pakistan’s economic recovery.
Last week, IMF Mission Chief for Pakistan, Nathan Porter, also noted that substantial progress had been made toward finalizing a Staff-Level Agreement (SLA) on the first review of Pakistan’s $7 billion loan program. This milestone is crucial as it will unlock around $1 billion in funding as part of the second installment of the loan.
In addition to economic matters, Aurangzeb addressed the pressing issue of climate change. He called for structured climate financing to address environmental risks, stressing the urgent need to tackle the growing threats posed by issues like the rapid melting of glaciers and economic disruptions in cities such as Lahore.
Aurangzeb also acknowledged the challenges in fully utilizing international pledges for flood rehabilitation, citing issues in resource implementation.
On Thursday, State Bank of Pakistan Governor Jameel Ahmad weighed in, stating that there were no obstacles from the central bank’s side in reaching the staff-level agreement with the IMF. He suggested that any remaining issues were likely related to the federal government, but expressed optimism that an agreement would be reached soon.
During a Public Accounts Committee (PAC) meeting, Ahmad confirmed that discussions were ongoing and hoped for a swift resolution, though he did not provide a specific timeline for the overdue agreement, which was initially expected by March 14.
The PAC session also revealed that the federal government is set to grant Finance Minister Aurangzeb “emperor-like powers” to approve special honoraria for employees and officers of various government departments.
As of now, Pakistan and the IMF are finalizing the Memorandum of Economic and Financial Policies (MEFP), particularly in areas like trade, taxes, and circular debt. Despite delays in finalizing certain aspects, federal authorities remain hopeful that the agreement will be concluded soon. The IMF’s schedule for the program review required completion by March 15, but both sides are optimistic that the final steps are near.
