Finance Minister Muhammad Aurangzeb assured on Thursday that the government remains “very committed” to the International Monetary Fund (IMF)’s structural reforms, despite uncertainties surrounding the $7 billion bailout schedule. Concerns emerged when Pakistan’s name was absent from the IMF executive board’s agenda for August 28. The finance minister had previously anticipated board approval by late August, contingent on confirmation of $12 billion in debt rollovers from China, Saudi Arabia, and the UAE. To date, only $1 billion has been rolled over by the UAE, with the remaining $11 billion still pending.
The IMF executive board is now expected to approve Pakistan’s bailout program in September. Meanwhile, Aurangzeb emphasized that the government is in “constant contact with the IMF” and is committed to ensuring macroeconomic stability through the program.
Speaking at the inauguration of the Buna-Raast Connectivity Project, Aurangzeb addressed challenges related to remittances, noting that a significant share still flows through informal channels. He stressed the need for more administrative measures to curb illegal channels and reduce economic leakages, highlighting the role of digitalization in promoting transparency and efficiency.
PM Shehbaz Sharif to Unveil Five-Year Economic Revival Plan
During the same event, Prime Minister Shehbaz Sharif announced that a five-year economic revival plan would be unveiled soon, following extensive discussions with stakeholders. The “home-grown” program aims to boost Pakistan’s economy by focusing on agriculture, information technology, and other untapped sectors.
The prime minister emphasized the importance of reforms in the Federal Board of Revenue (FBR) and the power sector, expressing optimism about the outcomes of these reforms. He underscored the need for hard work and sacrifice to achieve the plan’s goals, stating, “God willing, you will see dividends and we will find our place in the comity of nations through hard work.”
Buna-Raast Connectivity Project Launched
The Buna-Raast Connectivity Project, which links the Raast payment mechanism with the Arab Monetary Fund’s Buna system, was officially launched. This initiative is designed to facilitate millions of overseas Pakistanis in Arab countries by providing a swift, affordable, and effective remittance mechanism. The prime minister highlighted that this project would enhance Pakistan’s foreign exchange reserves and strengthen ties with the Arab world, marking a significant step forward in modernizing the country’s digital payment infrastructure.
