ISLAMABAD: Finance Minister Muhammad Aurangzeb has said that Pakistan shared its economic plan with officials of the International Monetary Fund (IMF) during the recent visit of the global leader’s mission to the country.
While trying to clear up speculations regarding the visit, he said there were no surprises in the meetings with the IMF mission. He made the remarks while addressing a press conference on Sunday.
“They didn’t say anything that we were not aware of already, there were no surprises,” Aurangzeb said.
The IMF mission led by Nathan Porter paid a visit to Pakistan from November 12 to 15. As the visit was not expected, there were speculations that the IMF’s visit would mean that the government would have to bring a mini-budget.
Aurangzeb added the visit was part of the ongoing engagement between Pakistan and the international financial institution saying that discussions were held on energy, privatization and public finance.
He said the government’s economic policies have resulted in a reduction of inflation from 38 percent to seven percent and the policy rate from 22 percent to 15 percent, while foreign exchange reserves have also increased.
He was of the opinion that interactions are important for building mutual credibility and trust. Regarding revenue and taxation, he said the government is firm on compliance and enforcement and every sector will have to play its due role in this regard.
The IMF’s mission chief Nathan Porter in a statement issued after concluding the visit said, “We had constructive discussions with the authorities on their economic policy and reform efforts to reduce vulnerabilities and lay the basis for stronger and sustainable growth.”
“We agreed with the need to continue prudent fiscal and monetary policies, revenue mobilization from untapped tax bases while transferring greater social and development responsibilities to provinces,” the IMF official stated.
He noted Pakistan should take steps to decrease state intervention in the economy and enhance competition, which will help foster the development of a dynamic private sector.
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It is pertinent to mention that a Pakistani delegation, held meetings with the IMF’s Deputy Managing Director Kenji Okamura in Washington, DC last month. The discussions focused on measures to expand fiscal space and reforms aimed at stabilizing Pakistan’s economy.
The IMF Executive Board on September 25 approved Pakistan’s 37-month Extended Fund Facility (EFF) of about US$7 billion.
The 37-month Extended Fund Facility arrangement would support economic stability and growth in Pakistan, with major policy objectives including reduced inflation, sustainable public finances, and strengthened external buffers.
