- FinMin describes the IMF discussions as “constructive and productive”.
- An open and factual dialogue took place with the IMF team, says Aurangzeb.
- The IMF claims to have held constructive negotiations with the Pakistani authorities.
ISLAMABAD: The federal government has rejected the possibility of a mini-budget after the conclusion of the International Monetary Fund (IMF) visit to Pakistan, denying reports of additional fiscal measures.
The development comes after the IMF mission – led by Nathan Porter – concluded a visit to Pakistan from November 12-15.
“Discussions with the IMF have been constructive and productive. Virtual negotiations with the IMF are, however, ongoing as some items required in-person discussions,” said Senator Muhammad Aurangzeb, Minister of Finance. Geo News SATURDAY.
He stressed that an open and fact-based dialogue had taken place with the IMF team. According to the finance minister, the delegation of the global lender listened carefully to Pakistan’s position and was satisfied with the discussions.
“The purpose of the IMF visit was not to review the economy but to build confidence,” stressed Aurangzeb, who is a first-time finance minister and has extensive professional experience in the private banking sector.
In a statement earlier today, the global lender said it had urged Pakistan to broaden its tax base by targeting untapped revenue sources – as the country grapples with challenges in increasing its tax collection. taxes.
The Fund said staff visits are a standard practice for countries conducting biannual program reviews and aim to engage with authorities and other stakeholders on country economic developments and policies as well as on the status of planned reforms.
“We have had constructive discussions with the authorities on their economic policy and reform efforts aimed at reducing vulnerabilities and laying the foundation for stronger, sustainable growth,” Porter said in a statement.
The official added that the visiting delegation and Pakistani authorities agreed on the need to pursue prudent fiscal and monetary policies and mobilize revenue from untapped tax bases while transferring greater social and financial responsibilities. development in the provinces.
Furthermore, he added, structural reforms in the energy sector and constructive efforts are essential to restore the viability of the sector.
The IMF, for its part, said it was encouraged by the reaffirmed commitment of the Pakistani authorities to economic reforms supported by the Extended Financing Facility (EFF) for 2024.
‘Reverse’
Furthermore, the finance minister called the failure of the privatization of Pakistan International Airlines (PIA) a “setback” for the government, but stressed that the IMF had listened to the government on this point and that the privatization of the companies public services would continue.
“We will continue on this path and not only PIA but all public companies like Gencos, DISCOs and airports will be gradually privatized,” FinMin Aurangzeb said.
Regarding the power sector, he mentioned that work is underway on the transmission and distribution side and Federal Minister Awais Leghari is doing good work in this area.
The Finance Minister further said that the approval of the National Fiscal Compact was delayed by eight to ten days, but he explained it to the IMF delegation and they appreciated it.
The provinces supported the National Fiscal Compact and Minister Aurangzeb personally thanked Sindh Chief Minister Murad Ali Shah for his frankness on this issue.
“As far as national interest is concerned, the KP government has (also) always stood with the federal government,” he further emphasized.
“We are continuing the resizing of government and this has been completed in 11 ministries and an exercise is underway for the resizing of the other five ministries.
To say that nothing has been done to reform the pension system is not fair because the civil bureaucracy will contribute to the pension system,” he said.