Pakistan’s Finance Minister Muhammad Aurangzeb has announced that the size of the new International Monetary Fund (IMF) Extended Fund Facility (EFF) will be determined within a week. This decision was disclosed after the meeting of the National Assembly Standing Committee on Finance, where Aurangzeb addressed the media’s inquiries.
Aurangzeb revealed Pakistan’s intention to request the IMF for an increase in the EFF through the Resilience and Sustainability Facility (RSF) at a later stage. While discussions have hovered around an EFF ranging from $6-8 billion, the exact amount is yet to be finalized.
During the finance committee meeting, Aurangzeb highlighted the fulfillment of most prior actions required by the IMF for the next program and expressed optimism in reaching an agreement within the current month. He also commended the improved economic indicators in the last fiscal year, citing a decrease in inflation and a significant increase in GDP growth. These positive trends indicate a strengthening economy.
In response to a committee member’s question, Aurangzeb mentioned the absence of import restrictions and emphasized the target to elevate the tax-to-GDP ratio to 13 percent, underlining its significance in national economic sustenance. Furthermore, he acknowledged the provincial finance ministers’ initial agreement on taxing agricultural income.
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Aurangzeb stressed the IMF’s stance on universal taxation and affirmed the commitment to enhancing public confidence in the Federal Board of Revenue (FBR) through financial transparency. Additionally, he disclosed the issuance of additional refunds amounting to Rs60 billion in the last financial year.
Highlighting the significant proportion of government expenditure allocated to interest payments, Aurangzeb expressed the government’s intent to promote public-private partnerships in the development budget. This strategy aims to leverage private sector resources and expertise to enhance the efficiency and effectiveness of development projects.
Overall, Aurangzeb’s statements reflect the progressing negotiations with the IMF and anticipate reaching an agreement within the month, emphasizing the potential positive impact on Pakistan’s economy.
