ISLAMABAD: Finance Minister Muhammad Aurangzeb announced on Wednesday that an IMF delegation is expected to visit Pakistan at the end of September. Following this visit, the country anticipates receiving the third $1 billion installment of the ongoing $7 billion Extended Fund Facility (EFF), contingent upon successful completion of the upcoming review.
In informal remarks to the media, Aurangzeb stated that Pakistan has already received $2.1 billion from the program, which is spread over a 37-month period. He emphasized that preparations for the review are fully underway.
The minister also highlighted progress in the aviation sector, revealing that Pakistan International Airlines’ (PIA) routes to Europe and the UK have been reopened, drawing significant interest from potential bidders for its privatization. While acknowledging improvements in the airline’s situation, Aurangzeb noted that comprehensive reforms in loss-making state-owned enterprises—responsible for Rs6 trillion in cumulative losses—will take time. Currently, 24 such entities are being prepared for privatization, with governance reforms in progress.
Aurangzeb further mentioned that pension reforms in the civil service have been implemented. He expressed optimism about accelerating privatization efforts this year and continuing to optimize operations across 43 ministries and over 400 government departments. He also pointed out that last year’s debt servicing costs were reduced by Rs1 trillion.
He underscored that the Prime Minister has directed that key decisions involve consultations with the private sector. Positive discussions with traders over the past six weeks have been noted, and the government plans to consult business chambers on policy matters, although unanimity is not always expected.
Additionally, Aurangzeb revealed that agreements have been reached to lower electricity tariffs, with a dedicated task force working on further reducing energy expenses soon. He highlighted Pakistan’s improved international standing, noting that two global rating agencies have upgraded the country’s credit outlook, with a third agency expected to follow suit.
The minister also shared that Pakistan plans to issue Panda bonds by year’s end, the policy rate has decreased to 11%, and CEO confidence in the country’s economy has surged by 84%. He stressed the importance of leveraging trade agreements with the United States to boost economic growth.
