Pak: Finance minister expresses confidence in securing extended IMF loan programme

ISLAMABAD: Pakistan Finance Minister Muhammad Aurangzeb expressed confidence that the country would secure an extended loan programme with the International Monetary Fund (IMF), adding that it could contribute to macroeconomic stability, reported Dawn.

While addressing a press conference in Islamabad at the end of the fiscal year 2023-24, the finance minister stressed his and Prime Minister Shehbaz Sharif's hopes that the upcoming IMF programme would be the country's last.

"From my perspective, the prime minister agrees that this will be the last IMF program. This is my hope," he said.

Pakistan President Asif Zardari on Sunday gave assent to the government's tax-heavy Finance Bill 2024 for the new fiscal year, Dawn reported.

The government presented the budget two weeks ago, drawing sharp criticism from opposition parties, especially the Pakistan Tehreek-e-Insaf (PTI), as well as coalition ally Pakistan Peoples Party (PPP).

Earlier on Friday, the government extended exemptions in specific sectors while announcing new tax measures in several areas to generate additional revenue in the coming fiscal year to meet the International Monetary Fund's criteria.

During the NA session, opposition lawmakers, particularly from the PTI, criticised the budget, asserting that it was now an open secret that the document was dictated by the International Monetary Fund (IMF).

The leader of the opposition Omar Ayub Khan denounced the budget as "economic terrorism against the people".

However, Pakistan is in talks with the IMF for a loan of USD 6 billion to USD 8 billion, according to Dawn.

Aurangzeb, in his press conference, stressed the importance of macro stability, especially considering Pakistan's reliance on loans.

"If we cannot repatriate an investor's dividends, it will make asking for additional investment difficult," he said.

The finance minister highlighted that Pakistan has received USD 1.4 billion in foreign investment, with USD 1 billion from the World Bank for the Dassu hydroelectric project and USD 400 million from an international financial institution (IFI) to finance the acquisition process for Pakistan Telecommunications Ltd.

He also said that a condition of the IMF programme was to end tax exemptions on certain sectors of industry, reported Dawn.

"They are clear that the Rs 3.9tr worth of exemptions need to end." He added that the government has not given new exemptions, but only extended existing ones.

According to Dawn, Aurangzeb added that the government was having virtual discussions towards achieving a staff-level agreement.

"There are prior actions, then structural benchmarks," he explained. "Trust us, we will get this done, maybe in July."