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Wednesday, May 22, 2024

Pakistan’s Forex Reserves to Reach $10: Finance Minister

Pakistan's Finance Minister discusses the country's economic outlook, emphasizing foreign exchange reserves, IMF collaboration, tax reforms, privatization, and investment activities during engagements with UAE investors.

Pakistan’s Finance Minister, Muhammad Aurangzeb, predicts that the country’s foreign exchange reserves will reach $9 to $10 billion by the end of June, marking a significant improvement from previous years. This announcement comes during the seventh ‘Leaders in Islamic Business Summit’ in Islamabad, where Aurangzeb emphasizes the positive trajectory of Pakistan’s economic stability.

Acknowledging the crucial role of the International Monetary Fund (IMF), Aurangzeb underscores the necessity of the current Stand-By Agreement (SBA) as a means to an end, aiming for sustained macroeconomic stability. He highlights the country’s discipline and commitment to IMF-prescribed reforms, which have been recognized during recent discussions in Washington.

Furthermore, Aurangzeb emphasizes the need for execution and sustainability in economic reforms, particularly focusing on energy and tax sectors. He stresses the importance of bringing untaxed sectors into the tax net and resolving pending tax litigations to ensure financial stability.

Path to Economic Sustainability and IMF Collaboration

Aurangzeb outlines a clear roadmap for transitioning out of IMF loans, emphasizing the government’s privatization agenda and the imperative for ministries to curb the burden of state-owned enterprises (SOEs). He expresses optimism regarding the IMF’s alignment with Pakistan’s priorities, anticipating a staff-level agreement on a larger and longer-term program with the IMF.

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Amidst speculations surrounding the IMF Executive Board’s meeting, Aurangzeb remains confident in Pakistan’s inclusion and approval of the final tranche under the SBA. He dismisses baseless claims of program delays and reaffirms the country’s commitment to IMF-prescribed reforms.

Diversifying Investments and Economic Partnerships

In parallel, Aurangzeb engages with UAE investors in Dubai, aiming to bolster investment activities between the UAE and Pakistan. Highlighting Pakistan’s competitive advantages, he explores opportunities for diversification in various sectors, including information technology, renewable energy, and infrastructure.

Aurangzeb underscores the role of the Special Investment Facilitation Council in providing comprehensive support services to investors, ensuring a seamless experience and fostering sustainable growth in Pakistan’s economy.

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Through strategic collaboration with international partners and adherence to IMF guidelines, Pakistan navigates towards economic resilience and sustained growth, poised to capitalize on emerging opportunities for development and prosperity.