Finance Minister Muhammad Aurangzeb Reaffirms Commitment to IMF Reforms Amid Bailout Uncertainty

By Desk On Aug 22, 2024

Finance Minister Muhammad Aurangzeb reaffirmed the government’s strong commitment to the International Monetary Fund (IMF)’s structural reforms on Thursday, amid growing uncertainty surrounding the IMF’s $7 billion bailout schedule for Pakistan.

Speculation arose when Pakistan’s name was absent from the IMF executive board’s August 28 schedule. Previously, the finance minister had expected IMF board approval by the end of August, contingent on the confirmation of approximately $12 billion in debt rollovers from China, Saudi Arabia, and the UAE. However, aside from a $1 billion rollover from the UAE, the remaining $11 billion in debt extensions have not yet materialized.

The IMF’s executive board is now anticipated to approve Pakistan’s $7 billion bailout program in September. Despite the delay, Aurangzeb assured that the government is in “constant contact with the IMF” and remains focused on achieving macroeconomic stability.

Speaking at the inaugural ceremony of the Buna-Raast Connectivity Project, Aurangzeb emphasized the importance of addressing economic leakages, particularly in the remittances sector, where the informal market still captures a significant share. He highlighted the need for continued administrative measures to curb illegal channels and stressed that digitalization is key to increasing transparency and reducing corruption in the tax and power systems.

“We call it leakages, but ultimately, this is about addressing corruption and improving processes through technology,” Aurangzeb stated.