FM calls for collective action at G-24 meeting

October 23, 2024 (MLN): The Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has urged all G-24 development partners to work closely together to resolve the pressing issues of climate change, population growth, and child stunting faced by developing countries, especially Pakistan.

He attended the G-24 Ministers and Governors Meeting in Washington DC. 

In his statement on becoming the Second Vice Chair of the G-24 Bureau during the fiscal year 2024-25, the Finance Minister emphasized the need to address issues including high debt burdens on developing countries, the need for climate action and greater representation of developing countries in the Bretton Woods institutions. 

Finance Minister met with a delegation of CitiBank led by Mr. Jay Collins, Vice Chair of the Public Sector.

He briefed the bank team about the reforms being undertaken in the areas of taxation, energy, SEOs, pensions and right-sizing of the government and outlined the long-term Road-to-Market strategy. He said that the government would explore the option of tapping into the international capital markets in due course.The 

Finance Minister met with Mr. Makhtar Diop, Managing Director of the International Finance Corporation (IFC). Issues relating to expedited evaluation of bids for Islamabad airport, Diversified Payment Rights (DPR), raising local currency through offshore bond issuance, privatization of DISCOs and HBFC came under discussion.

He thanked IFC for its advisory and financial support to Pakistan and requested the Managing Director to deploy innovative financing models and support private investments in agribusiness, healthcare, water, transportation and digital infrastructure in Pakistan.

He outlined the government priorities of modernizing electricity transmission and distribution networks, which could benefit from enhanced IFC support and technical assistance.

He also appreciated IFC’s continued assistance to Pakistan, including in PIA’s privatization which the Government expected to finalize by the end of the year. In the end, he extended the invitation to Mr. Diop to visit Pakistan.

Finance Minister participated in the V20 Ministerial Dialogue on the theme “Realizing Climate Prosperity through Financial Reform, Debt Solutions, and Affordable Capital”.

In his intervention, he informed that Pakistan was developing its Climate Prosperity Plan. He emphasized the need to reform global finance to “make debt work for the climate” and called upon Multilateral Development Banks (MDBs) to expand grant opportunities and concessional financing windows.

He also endorsed the official recognition of the V20 by the International Monetary Fund (IMF) as an official intergovernmental group.

Finance Minister met with his Saudi counterpart, Mohammed Aljadaan, on the sidelines of the World Bank-IMF Annual Meetings in Washington DC, today. Appreciating the historical, fraternal bonds between Pakistan and the Kingdom of Saudi Arabia, the two Ministers resolved to further deepen mutually beneficial economic ties, enhance bilateral trade, and facilitate investments in key sectors.

The Saudi Minister shared his experience of reforms in the energy sector. Both sides agreed to advance cooperation in areas of mutual interest.

Finance Minister had a fireside chat with Mr. Jihad Azour, Director Middle East and Central Asia Department (MCD), IMF in the forum “Governor Talks- Pakistan From Stabilization to Sustainable Growth via Structural Reforms”, He highlighted policy actions taken by the government to regain economic stability, increase tax revenues, make taxation in Pakistan fairer and more efficient and tackle deep-seated-structural distortions to move the country from stabilization to growth.

Finance Minister held a meeting with H.E Mr. Mehmet Simsek, Türkiye’s Treasury and Finance Minister. Recalling the historical, fraternal bonds and muti-faceted cooperation between Pakistan and Türkiye, Finance Minister stated that there existed great potential to enhance the current volume of bilateral trade.

He said that Pakistan could learn from Türkiye’s experience of power sector reforms and invited Turkish firms to enter into mutually beneficial JVs with Pakistani counterparts.

Minister also met with Mr. Brent Neiman, Assistant Secretary for International Finance of the US Treasury Department in Washington DC.

He briefed Mr. Neiman about measures to broaden the tax base, align provincial AIT regimes with federal personal/ corporate income tax rates, rationalize subsidies, reform the energy sector, overhaul SOEs and build climate resilience through the effective implementation of the C-PIMA Action Plan and enhanced climate adaptation investments.

He also thanked the US for its support to Pakistan in securing the IMF’s Extended Fund Facility. Mr. Neiman appreciated the Government of Pakistan’s commitment to wide-ranging structural reforms resulting in a reduction of fiscal and current account deficits and reduced inflation.

The two sides discussed ways to strengthen cooperation between the financial sectors of Pakistan and the United States.

Other engagements of the Finance Minister included media interviews with Bloomberg and interaction with representatives of the Bank-Fund Staff Association of Pakistanis.

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