Federal Minister for Finance and Revenue Muhammad Aurangzeb said on Tuesday that the current plan is to get a big and much longer bailout program with the International Monetary Fund (IMF) with new terms under the Extended Fund Facility.
In conversation with media persons, he said it was important to evolve from mere cash deposits and debt rollovers towards a permanent solution.
The Finance Minister said he seeks IMF assistance for the upcoming budget and was willing to enforce the lender’s model to achieve macroeconomic stability. Aurangzeb mentioned that more a new and much bigger bailout program will be discussed with the lender’s mission slated to arrive today (Wednesday). He said talks on the new program will be more detailed during spring meetings in Washington next month.
When asked about taxation, he emphasized the need to include wholesale, real estate, and agriculture sectors in the tax net, questioning the sustainability of relying solely on taxes like the super tax.
Aurangzeb underscored the significance of structural reforms to avoid repetitive cycles of IMF programs.
He added that interest rates will start falling this fiscal year after comes down. He also highlighted the Special Investment Facilitation Council’s role in attracting foreign investment and discussed the transition from traditional deposit-based arrangements to equity investments.
The finance minister said he was committed to implementing tax reforms to enhance transparency and address tax evasion. He stressed the need to broaden the tax base and prevent talent drain while pushing forward with the privatization of debt-ridden enterprises including Pakistan International Airlines (PIA).
