Aurangzeb says only 'few issues' remain unresolved with IMF

ISLAMABAD: Minister for Finance and Revenue Senator Muhammad Aurangzeb on Friday reaffirmed that Pakistan’s discussions with the International Monetary Fund (IMF) remain “constructive,” with only a few outstanding issues left.

The minister made these remarks while virtually addressing a business session organized for the visiting Saudi business delegation at the Overseas Investors Chamber of Commerce & Industry (OICCI) in Karachi. The event was jointly hosted by the OICCI and the Pakistan Business Council (PBC).

Aurangzeb emphasized that the government views the private sector as the primary driver of economic growth, while the government’s role is to create an enabling environment for business and investment.

Highlighting recent improvements in macroeconomic indicators, the finance minister noted that macroeconomic stability has been restored, with all three major global rating agencies now aligned after several years.

He emphasized that stable financing rates, a steady foreign exchange regime, and adequate reserves have helped make capital and profit repatriation routine matters rather than challenges. Referring to the timely repayment of Pakistan’s US$500 million Eurobond on September 30.

The minister noted that while progress has been achieved on the stabilization front, the government is simultaneously pursuing structural reforms in taxation and energy sectors through a consultative process with the private sector.

Senator Aurangzeb appreciated the strategic partnership developing with the Kingdom of Saudi Arabia, especially in learning from Saudi Arabia’s Vision 2030 and its remarkable success in execution. He underlined that Pakistan looks forward to strengthening export-led growth, identifying it as one of the key constraints and opportunities for sustainable development.

He said Pakistan currently enjoys a unique confluence of favorable factors, macroeconomic stability, and positive geopolitical tailwinds, with longstanding partners such as Saudi Arabia, China, and the United States engaging with us on trade and investment, emphasizing that the Saudi delegation’s visit is both timely and strategically important in unlocking new avenues of bilateral cooperation.

On the domestic front, Senator Aurangzeb said that the government is finalizing rapid damage assessments following recent floods and will prioritize the use of domestic resources for rescue and relief operations before considering external assistance for rehabilitation and reconstruction.

Regarding the ongoing engagement with the International Monetary Fund, the minister reaffirmed that talks with the IMF mission remain constructive, with only a few outstanding issues, and expressed optimism about reaching a staff-level agreement shortly during his upcoming meetings in Washington.

The minister also apprised the participants of two major reform tracks being personally led by the Prime Minister on taxation reforms and Pakistan’s digital transformation towards a cashless economy.

He pointed out that while Pakistan’s recorded economy stands at $411 billion, nearly half remains undocumented, implying that “the real size of our economy is close to a trillion dollars.”