Pakistan to enter major loan programme with IMF, says Finance Minister

KARACHI: Federal Finance Minister Muhammad Aurangzeb has announced that Pakistan is going to enter “a major loan programme” with the International Monetary Fund (IMF).

“We are heading towards a major program with the IMF and will maintain microeconomic stability with it. We will need a three-year programme with the IMF,” he said while talking to journalists after addressing an event at the Pakistan Stock Exchange.

Aurangzeb said the inflation rate is coming down gradually and country’s current account is also better.

Responding to a question, the finance minister said the outsourcing of airports is at an advanced stage.

The minister said the government will hold detailed talks with IMF officials on April 14-15 in Washington. “The exchange rate is stable and hopefully it will improve gradually and the economy will be back on its feet soon,” he added.

Aurangzeb affirmed that the government was working day and night to expedite the privatisation process.

He also cited encouraging progress in the privatisation of Pakistan International Airlines (PIA). Additionally, he mentioned that privatizing distribution companies (Discos) was also being considered as part of broader endeavours. 

“Discos will be taken towards privatisation by working on them,” the minister asserted. 

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He further stressed that electricity theft had to be reduced, as there was an estimated Rs500 billion worth of power being stolen. 

“The government will provide the policy, and the private sector will execute it,” Aurangzeb explained, and also added that the best harvest of rice and wheat had been achieved. 

Furthermore, he said that the outsourcing of airports was at an advanced stage, while the tax-to-GDP ratio of 9% would be taken to 15%. “We have to end the economic leakages,” the minister insisted, adding that the amount of leakage is Rs3 trillion, and even if half of this was achieved, it would be encouraging. 

“If the leakages are stopped, the additional money will be spent on public projects,” said an optimistic Aurangzeb. 

He also noted the improvement in the banking sector, and reminded the people that the government’s Ramazan package had been increased from Rs7 to Rs12 billion. “We have to reduce the government’s expenses,” he announced.