The International Monetary Fund (IMF) is scheduled to send a mission to Pakistan in late September. This visit is important for Pakistan to secure the third tranche of $1 billion from the IMF’s Extended Fund Facility (EFF).
Finance Minister Muhammad Aurangzeb said preparations for the IMF review are complete. So far, Pakistan has received $2.1 billion out of the $7 billion EFF program. The IMF support aims to help stabilize Pakistan’s economy and promote growth.
Aurangzeb highlighted progress in key areas as the IMF mission approaches. Pakistan International Airlines (PIA) has reopened routes to Europe and the UK, drawing interest from buyers for privatization. However, reforming loss-making state enterprises will take time.
The government plans to privatize 24 state-owned companies and improve their governance. Civil service pension reforms are underway, and rightsizing efforts continue in over 400 government departments.
The finance minister stressed the government’s commitment to consulting the private sector on economic policies. Discussions with business groups have been positive, and their input will guide future decisions.
In addition, the government has agreed to lower electricity tariffs. A task force is working to reduce energy costs, a key step toward easing financial burdens.
Pakistan’s economic outlook has improved, with two international rating agencies upgrading its status. A third upgrade is expected soon. The government also plans to issue Panda bonds by the end of this year.
Aurangzeb noted the policy rate has been cut to 11 percent, boosting business confidence. The IMF mission’s upcoming visit is a crucial milestone for Pakistan’s economic reforms and international support.
Overall, the IMF continues to play a vital role in Pakistan’s efforts to stabilize and grow its economy. The government remains focused on meeting IMF conditions and improving financial health.
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