Aurangzeb hopeful of early IMF deal with only few issues pending

ISLAMABAD: Finance Minister Muhammad Aurangzeb has expressed optimism that Pakistan will soon reach a staff-level agreement with the International Monetary Fund (IMF), following what he described as “constructive” discussions with the lender. 

Speaking virtually at a business session in Karachi on Friday, attended by a visiting Saudi delegation, Aurangzeb said only a “few issues” remain unresolved and that he expects positive progress during his upcoming visit to Washington. The session was co-hosted by the Overseas Investors Chamber of Commerce & Industry (OICCI) and the Pakistan Business Council (PBC). 

Saudi partnership and private sector focus 

Aurangzeb reaffirmed Pakistan’s commitment to private sector-led growth, saying the government’s role was to provide a supportive environment for businesses to thrive. “The private sector must lead the way in driving growth, our job is to provide the right ecosystem,” he said. 

Highlighting recent economic improvements, the finance minister pointed to a stable foreign exchange market, alignment among global rating agencies, and Pakistan’s smooth repayment of a USD500 million Eurobond. “When there is macroeconomic stability, such events become non-events, there is no drama,” he remarked. 

He praised Saudi Arabia’s Vision 2030 as a model of strong execution and said Pakistan’s cabinet had approved a landmark Security Pact with the Kingdom to strengthen bilateral cooperation. Aurangzeb added that Pakistan was enjoying a “unique confluence of favourable factors,” including improved stability and stronger ties with key partners such as Saudi Arabia, China, and the United States. 

FDI rises and reforms continue 

Separately, Aurangzeb informed the National Assembly that Foreign Direct Investment (FDI) rose by 27.2 percent in FY2025, reaching USD4.027 billion from USD3.17 billion a year earlier. He said FDI had also increased by 23.3 percent in FY2024, indicating sustained investor confidence. 

The minister noted that tax refunds worth Rs30.22 billion are pending for 293,232 exporters, with another Rs10.88 billion awaiting disbursement for July and August of the current fiscal year. 

Minister for Parliamentary Affairs Tariq Fazal Chaudhry told the House that a regulatory framework has been introduced to oversee cryptocurrency operations, including the creation of the Pakistan Virtual Asset Regulatory Authority and the Pakistan Crypto Council. 

Meanwhile, updates on the privatisation process revealed that bidding for Pakistan International Airlines (PIA) is expected by the end of November, while the sale of the First Woman Bank is scheduled for October 17. The agreement for the House Building Finance Corporation is likely to be finalised before December ends.