Finance Minister briefs Chinese officials on engagement with IMF

ISLAMABAD: Finance Minister Muhammad Aurangzeb, during a meeting with high-ranking officials from the Chinese institutions on Friday, briefed them about the government’s reform agenda and engagement with the International Monetary Fund (IMF).

According to press release issued by finance ministry here, the finance minister and Minister for Power, Sardar Awais Ahmad Khan Leghari held meetings with Governor of People’s Bank of China (PBoC), Pan Gongsheng and Vice Administrator National Energy Administration (NEA), Ren Jingong.

Ambassador Khalil Hashmi and officials of the Embassy accompanied the Ministers, according to the press release.

The discussions focused on the significant strides made by Pakistan in improving its macroeconomic indicators by focused reforms in taxation, energy and privatization of the state-owned enterprises.

The reforms have already started showing their results, particularly, reducing inflation from 38% to 13% marks a substantial achievement for the economy.

Additionally, the stabilisation of the exchange rate and the bolstering of foreign exchange reserves were highlighted as key factors contributing to the economic upturn.

There was consensus was that such reforms are indispensable for achieving long-term stability and fostering sustainable economic growth.

The Governor’s recognition of Pakistan’s policy measures reflects a broader international perspective on the importance of economic resilience and the positive impact of prudent fiscal management, the statement added.

Underlining Pakistan’s plan to launch Panda Bonds, Minister for Finance briefed PBoC and other Financial Institutions about the steps taken so far and sought cooperation of the Chinese institutional investors in the capital market and seek benefit from the pro-business policies of the new Government.

Lauding President Xi Jinping’s Belt and Road Initiative (BRI) both the Ministers noted the achievements during the first phase of the China-Pakistan Economic Corridor (CPEC), a flagship project of BRI, for strengthening the infrastructure in energy, transport sectors along with others.

It was highlighted that during the next phase of CPEC, focus is on strengthening B2B cooperation, with private sector playing the central role in the development and economic growth.

Meanwhile, in a meeting with Vice Administrator NEA, Minister for Power expressed government’s conviction to introduce energy reforms aimed at enhancing efficiency of power sector by addressing systemic issues and cutting transmission losses. He appreciated NEA for signing the MoU on improving governance of the Power Sector and expressed resolve to fast-track implementation of the agreement.

The Ministers also met Executive Vice President of China Development Bank (CDB), President of National Association of Financial Market Institutional Investors (NAFMII), Chairperson of Silk Road Fund (SRF), Chairman of China International Capital Corporation (CICC).

On the instructions of the Prime Minister, the two Ministers paid an official visit to Beijing from 24-26 July 2024 as part of the government’s efforts to implement consensus reached at the leadership level during the former’s recent visit to China.