ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb has categorically dominated out the potential of the federal government introducing a mini-budget after constructive talks with the International Monetary Fund (IMF).
Speaking to Geo News on Saturday, the finance minister stated: “The discussions with the IMF had been constructive and productive. Virtual negotiations with the IMF, nonetheless, are ongoing, as sure factors required in-person discussions.”
The finance czar’s remarks got here after the IMF’s mission — led by Nathan Porter — concluded a employees go to to Pakistan from November 12 to fifteen.
Expanding on the IMF staff’s go to, the minister emphasised that open and fact-based dialogue was held with the IMF staff. According to the finance minister, the worldwide lender’s delegation listened fastidiously to Pakistan’s place and appeared glad with the discussions.
“The function of the IMF’s go to was to not overview the financial system however to construct confidence,” confused Aurangzeb, who’s a first-time finance minister, with a protracted working expertise within the non-public banking sector.
In a press release earlier right this moment, the worldwide lender stated it has urged Pakistan to broaden its tax base by focusing on untapped income sources — because the nation grapples with challenges in increasing its tax assortment.
The Fund stated the employees visits are customary apply for international locations with semi-annual programme opinions and intention to interact with the authorities and different stakeholders on the nation’s financial developments and insurance policies and the standing of deliberate reforms.
“We had constructive discussions with the authorities on their financial coverage and reform efforts to cut back vulnerabilities and lay the premise for stronger and sustainable development,” Porter stated in a press release.
The official added that the visiting delegation and the Pakistani authorities agreed on the necessity to proceed prudent fiscal and financial insurance policies and income mobilisation from untapped tax bases whereas transferring higher social and improvement duties to provinces.
In addition, he stated, structural vitality reforms and constructive efforts are crucial to revive the sector’s viability.
The IMF, in the meantime, stated it was inspired by the Pakistani authorities’ reaffirmed dedication to the financial reforms supported by the 2024 Extended Fund Facility (EFF).
Govt to proceed with SOEs’ privatisation
Moreover, the finance minister termed the failed Pakistan International Airline’s (PIA) privatisation transfer a “setback” for the federal government however confused that the IMF listened to the federal government on this and privatisation of state-owned enterprises would proceed.
“We will proceed with it and never solely PIA however all state owned enterprises like Gencos, DISCOs and airports shall be privatised progressively,” FinMin Aurangzeb clarified.
In relation to the facility sector, he talked about that work is being completed on the transmission and distribution aspect and Federal Minister Awais Leghari is doing a superb job on this matter.
The finance minister additional stated that National Fiscal Pact approval was delayed by eight to 10 days however he defined it to the IMF delegation and so they appreciated it.
The provinces have supported the National Fiscal Pact and Minister Aurangzeb personally thanked Sindh’s Chief Minister Murad Ali Shah for being forthcoming on this matter.
“When it involves nationwide curiosity, the KP authorities has [also] at all times stood with the federal authorities,” he additional highlighted.
“We are persevering with the rightsizing of the federal government and it has been accomplished in 11 ministries and train is underway for the opposite 5 ministries’ rightsizing.
To say that nothing has been completed to reform the pension scheme is just not honest as a result of civil forms shall be contributing to the pension scheme,” he asserted.
