During a recent virtual meeting via Zoom, Finance Minister Muhammad Aurangzeb provided a comprehensive briefing to representatives from Moody’s Ratings about Pakistan’s Staff-Level Agreement (SLA) with the International Monetary Fund (IMF), as well as ongoing reforms in the energy sector and State-Owned Enterprises. The reforms aim to enhance operational efficiency and governance through privatization and rightsizing efforts.
The finance minister underscored the significant strides made by Pakistan’s macroeconomic indicators, thanks to the positive influence of the nine-month Stand-By Arrangement with the IMF. The IMF’s recent announcement of an SLA with Pakistan for a $7-billion, 37-month loan program further solidifies its commitment to fostering stability and inclusive growth.
Aurangzeb also briefed Fitch representatives about the IMF deal and the comprehensive reform measures designed to ensure stable growth. The new Extended Fund Facility (EFF) is currently pending approval by the IMF Executive Board and is contingent on timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.
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Under the new program, Pakistan is committed to increasing revenues by 1.5% of GDP in FY 2025 and by 3% over the next three years. The government also aims to achieve a primary surplus of 1% of GDP for FY 2025. Aurangzeb also shared insights into Pakistan’s $9.4 billion foreign exchange reserves, stock exchange performance, inflation rate, and a rise in foreign remittances. He also highlighted that over 150,000 retailers have registered as first-time taxpayers.
Aurangzeb reiterated the growing confidence of multilateral institutions in financing projects in Pakistan to the rating agency. In response, the representatives from Moody’s Ratings appreciated the comprehensive briefing and expressed their optimism about Pakistan’s economic trajectory. They cited robust fiscal reforms and strategic initiatives as key factors supporting the country’s economic outlook, further bolstering the audience’s confidence in Pakistan’s economic future.
