Finance minister Muhammad Aurangzeb reiterated on Thursday Pakistan’s commitment to ensuring “smooth and successful” completion of the current 37-month International Monetary Fund (IMF) programme in a meeting with the lender’s new Resident Representative for Pakistan Mahir Binici, the Finance Division said in a statement.
Binici called on the minister at Finance Division and “reciprocated the sentiment and committed himself to working closely with the Government of Pakistan for ensuring a successful completion of the IMF programme,” the statement added.
During the meeting, Aurangzeb described the current IMF loan as the country’s own programme of macro-economic reforms and structural adjustments funded and supported by the Washington-based lender.
“The government of Pakistan under Prime Minister Shehbaz Sharif is very clear that the trust and credibility we have regained over the last 14 months, must be maintained to lay the path for an inclusive and sustainable growth,” he was quoted as saying in the statement.
Aurangzeb extended a formal welcome to Mahir Binici on his assignment in Pakistan and assured him full support for carrying out his official responsibilities and a smooth day-to-day consultation with the government of Pakistan, the Finance Division said.
Pakistan and IMF authorities signed a staff level agreement (SLA) for a $7-billion, 37-month loan programme back in July this year, aimed at cementing stability and inclusive growth.
Later in September, IMF’s Executive Board approved the loan programme for Pakistan after confirmation of necessary financing assurances from the country’s development and bilateral partners.
Last month, Pakistan discussed its $7 billion bailout reform agenda with the IMF during an unscheduled staff visit.
“We discussed reforms in taxation, energy sector, privatisation of loss-making state-owned enterprises (SOEs) and public finance,” Aurangzeb said then in a recorded video statement broadcast by state-run PTV.
The talks in Islamabad came within six weeks of the IMF approving the bailout, an unusual move as it is rare for the fund to discuss reforms ahead of a review of the reform plan under the loan programme.
After wrapping up the visit, the IMF said it was encouraged by Islamabad’s reaffirmed commitment to the economic reforms under the Extended Fund Facility its board had approved in September to reduce vulnerabilities.
The first review of Pakistan’s reforms is due in the first quarter of 2025.
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