Pakistan, IMF discuss fiscal strategy and energy sector sustainability

WEB DESK: Pakistan’s Finance Minister, Muhammad Aurangzeb, engaged in discussions regarding structural reforms and the sustainability of the energy sector during a meeting with the International Monetary Fund (IMF) mission on Thursday, as per a statement released by the finance ministry.

The IMF mission is currently in Pakistan to conduct the second review of the $3 billion stand-by arrangement (SBA). On Thursday, the mission paid a visit to the Ministry of Finance, where they met with the finance minister.

According to the Finance Division, the discussions revolved around various key areas, including overall macroeconomic indicators, the government’s initiatives towards fiscal consolidation, structural reforms, the viability of the energy sector, and the governance of state-owned enterprises (SOEs).

Nathan Porter, the head of the IMF mission, extended congratulations to Muhammad Aurangzeb on his appointment as the finance minister during the meeting.

In response, the finance minister welcomed the mission and affirmed the government’s dedication to collaborating with the IMF on the reform agenda aimed at fostering economic growth and stability in Pakistan.

The visit of the IMF mission to Pakistan holds the potential to result in a staff-level agreement on the second review of the SBA.

Under the nine-month programme approved in July 2023, Pakistan has already received $1.9 billion out of the total $3 billion allocated.

Shortly after assuming office, Aurangzeb outlined his stance regarding the IMF, indicating that Pakistan may explore the option of seeking a larger and more extended Extended Fund Facility (EFF) under the IMF programme to achieve macroeconomic stability.

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