As Pakistan inches closer to its 24th International Monetary Fund bailout package, Finance Minister Muhammad Aurangzeb has claimed that his five predecessors had not been able to negotiate such favourable terms with the global lender.

“I urge everyone to read this IMF agreement, which will be made public on September 25,” he said while addressing the 21st Annual Excellence Awards organized by CFA Society Pakistan in Karachi on Saturday.

The IMF board would meet on September 25 to discuss the $7 billion programme agreed in July with Pakistan, an IMF spokesperson said earlier this week.

Pakistan and the IMF reached an agreement on the 37-month loan programme in July. The IMF said the programme is subject to approval from its executive board and obtaining “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners”.

The South Asian country has also taken loans from commercial banks, foreign lenders, and friendly countries to improve the economy.

The finance minister expressed hope that it could be Pakistan’s last IMF programme, contingent upon the country implementing agreed-upon structural reforms.

While emphasizing the necessity for economic transformation, Aurangzeb stated: “We need to change the basic DNA of our import-based economy to achieve GDP growth beyond 4 per cent.” He highlighted key components of the IMF agreement, which includes maintaining a tax-to-GDP ratio above 13% and implementing reforms in state-owned enterprises and the energy sector.

Prime Minister Shehbaz Sharif said on Thursday that “friendly” countries have helped Pakistan meet the requirements necessary to secure an IMF bailout.

He said he would not provide further details on the assistance at this moment. Pakistani officials had said they were trying to arrange up to $2 billion to meet a financing gap, and were in discussions with commercial banks for this.

To meet the ambitious goal of a 40% increase in tax revenue, the government plans to digitise the taxation system, aiming to reduce human intervention and enhance transparency. Aurangzeb also noted efforts to improve revenue collection from sectors that are under-taxed or untaxed.

He announced plans for further government restructuring, indicating that five more ministries would be identified for rightsizing. Aurangzeb advocated for public-private partnerships in Public Sector Development Program projects to foster growth.

Last month, the Cabinet Committee on Institutional Reforms recommended curtailing 150,000 vacant positions, banning contingency recruitment, and outsourcing non-core services like cleaning, and janitorial work, which would gradually phase out many positions in grades 1 to 16.

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He underscored the importance of finding substitutes for imports and attracting Foreign Direct Investment into export-oriented projects, with particular emphasis on the agriculture and IT sectors as focal points for economic development.

Earlier this week, the finance ministry told the National Assembly that the country secured $57.27 billion in external loans, which are separate from the International Monetary Fund programme, over the last five years.

Of this amount, $9.81 billion was obtained for “various projects.” Moreover, $3.9 billion has been repaid in interest or markup on these external loans.

This article was originally published in Business Recorder.