Finance Minister Muhammad Aurangzeb is confident that the Pakistani Rupee (PKR) will remain stable and won’t devalue more than 6-8 percent per year, Bloomberg reported on Thursday.
He dismissed significant devaluation concerns and expressed confidence that any aggressive measures won’t be necessary due to positive economic indicators such as solid forex reserves, stable currency, rising remittances, and steady exports.
Pakistan is currently being represented by Aurangzeb and his economic team at the IMF-WB Spring meetings in Washington this week.
Negotiations with creditors are underway, with Pakistan expecting an IMF mission visit next month and aiming for a loan agreement by late June or early July. Finance Minister Aurangzeb plans to request at least $6 billion as part of a lengthy loan program under the lender’s Extended Fund Facility.
The coalition government aims to boost key sectors like agriculture and information technology to achieve over 4 percent growth. Pakistan hopes to address high inflation and low growth, facing $24 billion in external financing needs.
It bears mentioning that Pakistan has struggled with long-term structural issues like privatizing state-owned companies despite previous efforts to meet IMF demands.
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He is well advised not to share in the fantasies of his bosses. He's supposed to be a sensible man who has to face reality.