Finance minister hopes IMF, Pakistan strike next deal by mid-July

• Aurangzeb expects IMF team to come to Pakistan in May.
• Saudi Arabia will invest $5 billion, says finance minister.
• Minister says direction for reforms of economy is clear. 

WASHINGTON: Finance Minister Muhammad Aurangzeb hoped that Pakistan and the International Monetary Fundy (IMF) reach a staff-level agreement by mid-July for the next expanded loan deal, The News reported Sunday.

Talking to journalists at the Pakistani embassy in Washington at conclusion of his week-long US trip, Aurangzeb said the long ignored economic reforms agenda should be implemented for a healthy economy.

Pakistani Ambassador to US Masood Khan was also present on this occasion.

The minister anticipated an IMF team to come to Pakistan by mid-May to finalise the terms of the new extended loan arrangement. "The new programme's draft will take form later. By mid-May, we will begin delving more into the specifics of the project," he stated.

He hailed the current Stand-by Arrangement (SBA) as a success and expressed optimism that the last tranche of 1.1 billion dollars will be disbursed shortly following the IMF executive board’s approval by April end. The IMF has already said that its executive board will review Pakistan's SBA during a meeting scheduled by the end of this month.

“Direction for reforms of the economy is clear. The ball is in our court and we will have to work hard. Efforts to access the Chinese markets are underway. Improvement in taxation system will multiply the tax collections. While, we are bringing digitalisation in the Federal Board of Revenue (FBR) system as well,” he said.

Aurangzeb said progress on the public institute’s privatisation was also on the anvil. Debt on the Pakistan International Airline (PIA) continued to accumulate manifold every year, which the government had to bear, he said, adding that in the past the state’s efforts of privatisation encountered resistance.

The finance minister apprised that Saudi Arabia would invest $5 billion in Pakistan and the Saudi delegation told him in the meeting that some of the transactions would be carried out in next few days. He said big investors had hinted at investment in Pakistan.

Meanwhile, the Pakistani envoy to US said the finmin held meetings with representatives of the credit rating agencies and investors. He also invited Silicon Valley’s tech entrepreneurs for investment, he said, adding that the behaviour in the US regarding Pakistan had changed.

“Pakistan holds extensive opportunities for investment in the technology sector,” he said.

Khan said the minister called on his Saudi Arabian, Chinese and Turkish counterparts in the sidelines of the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF. The US authorities had assured Pakistan of full cooperation, whereas good news would soon come for the country from the IMF and World Bank, he said.