Economic stability brings Pakistan near to IMF program approval: FM

September 24, 2024 (MLN): The country’s restored economic stability has paved the way towards the approval from the board of the International Monetary Fund (IMF) for a $7-billion loan, Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb said on Tuesday while addressing the High-Level Private Sector Dialogue – CPEC-II and the Region.

He attributed this stability to the government's untiring efforts to restore international confidence and strict compliance with all the IMF conditions.

He revealed that an upcoming IMF meeting in the US could finalize a 37-month program, expressing optimism about its approval.

While sharing the positive developments, he said that inflation has dropped significantly which led to the decline in the policy rate and KIBOR. 

He also highlighted that the Government rejected all bids in the latest auction, showing that the government has no urgency to borrow.

"It is a message directed at banks to focus on private sector lending," he added. 

Speaking about CEPEC, he has reaffirmed the government's commitment to the second phase of the China-Pakistan Economic Corridor (CPEC-II), emphasizing the importance of private sector participation for sustainable growth.

On CPEC-II, Aurangzeb noted the transition from infrastructure development in Phase I to the monetization of these projects in Phase II.

“The current focus is execution," he said, underlining the critical need for meticulous planning and effective management.

He also stressed the importance of integrating private sector leadership into the new Silk Routes strategy.

The Minister thanked China and Saudi Arabia for their continued support. 

He also urged Development Finance Institutions (DFIs) such as Saudi Pak and Pak-China to take full advantage of CPEC’s potential.

Aurangzeb's remarks signal a solid foundation for growth, with the government staying firm on its reform agenda and pushing forward with strategic initiatives to boost regional economic integration.

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