Minister for Finance Senator Mohammad Aurangzeb stated that ongoing discussions with the International Monetary Fund (IMF) concerning the financing gap are progressing, with expectations set for the loan deal’s approval by late August.
Speaking to the local news channel, Geo News, on Tuesday night before departing for China, the minister was reassured that these negotiations would not affect the approval of the staff-level agreement.
Finance Minister Mohammad Aurangzeb expects the IMF’s executive board to approve the staff-level agreement by the end of August, following the summer break. Pakistan secured a 37-month, $7 billion loan agreement with the IMF earlier in the month.
Implementing strict measures, such as tax increases on agricultural incomes and higher electricity rates, has raised concerns among the public. These measures particularly impact the poor and middle-class Pakistanis, who are grappling with rising inflation and the possibility of further tax increases.
During his interview, Aurangzeb also discussed his upcoming trip to China, where he will join Federal Minister for Energy (Power Division) Awais Leghari. They will focus on energy sector reforms and Panda bonds with Chinese officials.
During his visit last week, sources reported to The News that Aurangzeb might negotiate rescheduling the $15.4 billion debt held by Chinese independent power producers (IPPs), aiming to extend the repayment period from 2036 to 2041.
Aurangzeb also plans to thank his Chinese counterpart for Beijing’s continuous support to Pakistan in various international arenas. He underscored the importance of Beijing to Islamabad, comparing it to the significance of Washington.
Furthermore, the minister intends to brief Chinese officials on the recent modifications made to power distribution companies and their boards, highlighting the continuous nature of reforms in all sectors.
