The International Monetary Fund Director MCD Jihad Azour said Pakistan should stay the course on reforms to keep on the path of improvement.
He said this while meeting the Pakistani delegation at the annual IMF/World Meetings this week. While thanking the IMF for its continued support to Pakistan, especially for the recently approved US$ 7 billion Extended Fund Facility, the delegation outlined the Government’s efforts towards fiscal consolidation, revenue expansion, energy, and SOE reforms, aimed at transitioning Pakistan from stabilization to growth.
Congratulating Pakistan on the successful start of the Fund program, Jihad Azour emphasized the importance of staying the course on reforms.
The team also met with the delegation of Alvarez & Marsal led by Dr. Reza Baqir, former Governor, State Bank of Pakistan (SBP), Managing Director and Global Practice Leader, Peter Briggs, Division Executive for Sovereign Advisory Services, and Thibaud Fourcade.
The Alvarez & Marsal team congratulated Pakistan on the successful conclusion of the Extended Fund Facility (EFF) with IMF and discussed various approaches through which Pakistan could access the international capital markets and external creditors. The team outlined the steps needed for the country to chart an accelerated path to capital markets following a well-sequenced strategy.
In another meeting with Kenji Okamura, Deputy Managing Director of the IMF, in Washington DC today, the Pakistan delegation highlighted measures to expand fiscal space by broadening the tax base, aligning the provincial AIT regime with the federal income tax regime, rationalizing subsidies, rightsizing the government, and reducing energy sector costs.
Discussions also covered stimulating private sector development, building climate resilience through RST financing, and pursuing prudent monetary and external sector policies. The need for steadfast implementation of reforms under the EFF was also emphasized.
Muhammad Aurangzeb, Federal Minister for Finance & Revenue, is leading Pakistan’s delegation to the Annual Meetings of the World Bank Group and IMF, being held in Washington DC from 21-26 October 2024. Other delegates include Imdad Ullah Bosal, Finance Secretary, Dr. Kazim Niaz, Secretary Economic Affairs, and Jameel Ahmad, Governor, State Bank of Pakistan.
