Pakistan heading for 'big' IMF program: Finance Minister

KARACHI: Following the standby agreement with IMF, Federal Finance Minister Muhammad Aurangzeb on Friday said that Pakistan is heading towards a big program with International Monetary Fund (IMF), ARY News reported.

Addressing the ceremony at Karachi Stock Exchange, the Finance Minister said that talks to be held with the IMF officials on April 14 and 15 in Washington.

He lauded the caretaker government initiative for economic stability, saying that with better economic policies, the country’s economy will stabilize.

Muhammad Aurangzeb stressed the need for following structural reforms agenda to take national economy towards stabilization.

He reiterated that the stock market has a vital role to play in bringing the country out of the economic crisis. However, the stock market is going in the right direction.

Commenting on the Federal Bureau of Revenue (FBR), he said that they are working to bring reforms in FBR as over Rs1.07 trillion worth revenue cases are still pending.

Moreover, the finance minister reaffirmed that they are working on the outsourcing of airports and privatization of Pakistan International Airlines (PIA) and the privitisation process will complete in June 2024.

He also mentioned that government was working to bring reforms in State-owned enterprise (SOEs), privatization and energy sectors besides improving tax system.

He, however highlighted the role of the private sector in economic development. The Finance Minister acknowledged the importance of the capital market in advancing economic growth adding that the government would work with Securities and Exchange Commission of Pakistan (SECP) to create a conducive regulatory environment for economic growth in the capital market.

The minister said, the government would focus more on improving the efficiency, transparency, and protection of investors in the capital market to enhance its performance. He said, the finance ministry would collaborate with the capital market to facilitate access to capital for small and medium-sized businesses.

Aurangzeb expressed gratitude for Chinese participation and investment in Pakistan’s capital market and stock holdings. He emphasized that the growing cooperation between PSX and Chinese exchanges was vital for the economic development of Pakistan and mutual benefits for both countries.

Earlier it was reported that as many as three Gulf countries including the United Arab Emirates, Saudi Arabia and Qatar have shown interest in buying the cash-strapped Pakistan International Airlines (PIA) as the government expedites its privatisation plan.

Sources privy to the matter said that the companies from the three countries have approached the Pakistan government to negotiate a deal for the PIA.

Pakistan has also given a briefing to the officials of the three Gulf countries regarding the national flag carrier.