Reforms crucial to make current IMF programme Pakistan’s last: FinMin

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Monday that sticking to the ongoing economic reform agenda is crucial to ensure the current International Monetary Fund (IMF) programme is the last while securing long-term growth.

Speaking to the National Assembly Standing Committee on Finance, Aurangzeb highlighted the recommendations from global financial bodies and domestic experts to maintain reforms, especially in areas such as taxation, energy, state-owned enterprises (SOEs) and public finances.

During the meeting chaired by Syed Naveed Qamar, discussions touched upon Pakistan’s commitments to the IMF, including performance targets and structural benchmarks. Some parts of the session were held privately due to the sensitive nature of the discussions.

Aurangzeb noted recent improvements in the economy particularly the shift from deficits to surpluses in the primary and current accounts. He cited a reduction in inflation from 38 per cent to under 5 per cent, a drop in the policy rate from 22 per cent to 15 per cent, and an increase in foreign reserves, which now cover 2.5 months of imports.

The minister warned that population growth is a major threat to economic progress and stressed the need for continued reforms.

The session also highlighted the role of provincial governments, especially in implementing agricultural income tax reforms.

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