The Minister of Finance, Muhammad Aurangzeb, expressed his optimism as to the negotiations underway with the International Monetary Fund (IMF), declaring that the talks are at their final stages and that there are no more important obstacles.
Addressing the media on Friday, the minister confirmed that Pakistan was on the right track to achieve the economic objectives of the IMF and reassured that the discussions will soon end positively.
Aurangzeb underlined Pakistan’s commitment to tax discipline, stressing government membership in the financial framework agreed with the IMF.
The talks are focused on securing the next financing tranche, which is crucial for the economic recovery of Pakistan.
IMF mission chief in Pakistan, Nathan Porter, also confirmed last week that significant progress had been made to reach a staff level agreement (SLA) concerning the first 7 billion dollar loan program in Pakistan.
The success of these discussions will open the way in Pakistan to receive around $ 1 billion in the second episode of the loan.
In addition, Aurangzeb took up the challenges of climate change, highlighting the urgent need for structured climate funding to combat environmental risks.
He recognized the growing threats posed by climate change, in particular the rapid fusion of glaciers and the economic disturbances caused by environmental changes, in particular in Lahore.
The Minister of Finance also underlined the international promises to rehabilitate floods, although the country has struggled to fully use these resources due to challenges of implementation.
Earlier Thursday, the governor of the central bank, Jameel Ahmad, said that there was no obtaining from the Pakistan State Bank team (SBP) in the conclusion of a staff level with the International Monetary Fund (IMF), and any current question could be linked to the federal government.
While speaking to the media after a meeting of the Public Accounts Committee (PAC), the governor hoped that the staff agreement would be concluded very soon with the IMF. However, he did not provide a firm date for the agreement, which has been late since March 14.
The CAP meeting also revealed that the federal government was about to give “Emperor type powers” to the Federal Minister of Finance Muhammad Aurangzeb to approve up to five special fees for employees and officers of various ministries.
“There is no problem with us, and any unanswered problem could be on the part of the federal government,” said Jameel Ahmad while answering a question on the calendar of the staff agreement with the IMF. The governor did not specify any special question, but said that the finalization of questions with the ministries and the divisions took time.
Pakistan and the IMF had talks from March 3 to 14, but the two parties could not reach an agreement at the level of staff due to delays in the finalization of the Economic and Financial Policies Protocol (MEFP). After the return of the mission to Washington, the Ministry of Finance organized at least two virtual sessions with the IMF in the presence of other stakeholders.
IMF and Pakistan are finalizing the MEFP in the fields of trade and taxes, as well as budget and circular debt figures. Federal authorities hope that the agreement will soon be concluded. According to the IMF board of directors, the first program examination and the final performance of 2024 and the continuous criteria must be completed by March 15.
