KEY POINTS
- IMF Executive Board expected to approve $1.2 billion tranche for Pakistan by early Dec.
- Tranche includes $1 billion under EFF and $200 million under RSF.
- Finance Minister Aurangzeb cites 73% of foreign CEOs view Pakistan as a viable investment destination.
- Government using AI-based monitoring to reduce tax leakages and broaden revenue base
- Economic indicators show gradual improvement in growth, reserves, and inflation stability
KARACHI: Finance Minister Muhammad Aurangzeb said on Wednesday that the International Monetary Fund (IMF) Executive Board is expected to approve Pakistan’s next $1.2 billion tranche in early December.
The two sides had already reached a staff-level agreement in Washington in mid-October on the sidelines of the IMF and the World Bank annual meetings.
The minister said the upcoming IMF approval would include $1 billion under the ongoing 37-month Extended Fund Facility (EFF) and $200 million under the 28-month Resilience and Sustainability Facility (RSF).
He noted that Pakistan had achieved macroeconomic stability with the support of traditional partners, including China, the United States, the GCC, and Saudi Arabia.
Quoting the latest Overseas Investors Chamber of Commerce and Industry (OICCI) perception and investment survey, Aurangzeb said that 73% of CEOs of foreign firms operating in Pakistan now consider the country a viable investment destination, compared to 61% in the previous survey.
“The endorsement has come from existing investors, which is an important sign of confidence,” he remarked.
Aurangzeb said Pakistan was now moving from stabilisation to growth through trade and investment led by the private sector. He said potential investment areas included minerals and mining, IT, agriculture, and pharmaceuticals.
He added that the recent strengthening of the rupee against the US dollar, improved foreign exchange reserves, and a steady decline in inflation had created space for a more predictable economic environment.
The State Bank’s prudent monetary policy and fiscal discipline, supported by better current account management, had also contributed to restoring investor confidence.
The minister said the government was deploying artificial intelligence-based monitoring to curb corruption and tax leakages, with systems already in place in the sugar and banking sectors and plans to expand to tobacco and beverages.
He added that 900,000 new taxpayers had been registered in the current tax year.
