There was nothing to hide in the International Monetary Fund mission’s visit to Pakistan, Finance Minister Muhammad Aurangzeb said on Sunday as the global lender concluded its trip on Friday.
“I have welcomed this visit because we have an ongoing dialogue as mutual trust and dialogue is made by dialogue,” Aurangzeb said in a live address which was aire don PTV News. He spoke about the IMF team’s visit to the South Asian country a few days back.
The unusual visit from Nov 12 to Nov 15 discussed a $7-billion bailout within six weeks of its approval by the IMF board but came too early for the first review of the Extended Fund Facility (EFF), due in the first quarter of 2025.
In September, the IMF’s Executive Board approved a new $7 billion, 37-month loan agreement for Pakistan that requires “sound policies and reforms” to strengthen macroeconomic stability. The approval released an immediate $1 billion disbursement to Islamabad.
The crisis-wracked South Asian country has had 22 previous IMF bailout programs since 1958.
Aurangzeb, a former banker, said that the two sides discussed reforms in taxation, energy, and state-owned enterprises. Privatisation and public finance were also on the agenda. He added that all such things were already known to the people.
The finance czar went on to add that the national fiscal pact and right-sizing of the federal government were the structural benchmarks in September that were achieved.
The Fund urged Pakistan to end the state intervention in the economy and enhance competition, which would help foster the development of a dynamic private sector.
In the “constructive discussion”, the two sides agreed on the need to continue prudent fiscal and monetary policies, and revenue mobilisation from untapped tax bases, while transferring greater social and development responsibilities to provinces.
He stressed the need for the right-sizing of the federal government to improve public financing. The government also working on the agriculture income tax, he added.
Aurangzeb thanked all chief ministers of the province for their support.
“This is an ongoing dialogue. Some of this is going to continue to happen virtually,” the finance minister said and added that he “would welcome every possible opportunity to meet face-to-face.”
Aurangzeb appreciated the IMF team for the visit to conduct “stock-taking” and hold discussions with them.
According to the finance minister, discussions with the IMF were constructive. While speaking about the revenue and taxation, he said: “We are going to be very firm on compliance and enforcement because as a country our hand has been forced. We cannot continue to go back to the same for more, whether it is salaried class or manufacturing sector.”
He shared Prime Minister Shehbaz Sharif would share a homegrown agenda with the people soon. He did not share many details.
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He urged everyone, including the Real Estate sector, wholesalers, and agriculture, to contribute to the country. “We have to do this. This is not a request,” Aurangzeb said.
Without stating it explicitly, he raised the rising population issue in the country amid high stunting growth and out-of-school children. He also raised climate change issue.
“We have already dealt with 11 ministries and implementation is under way,” Aurangzeb said while talking about the privatisation. “I will have a separate discussion on that also including the pension discussion.”
