On Tuesday, the government announced plans for an expanded IMF bailout to strengthen stability. Finance Minister Aurangzeb Khan, addressing the media, hinted at a possible policy rate cut. He stressed the committee’s independence. Khan also committed to digitizing the tax system to boost transparency and broaden the tax base. Furthermore, he revealed plans for privatising Pakistan International Airlines (PIA).
Khan mentioned an upcoming IMF review of the $3 billion Standby Arrangement (SBA). He expressed eagerness to discuss an Extended Fund Facility (EFF). Officials scheduled the final SBA review for March 14 to 22. Moreover, Khan hoped to lay the groundwork for further dialogue.
The minister remained noncommittal about seeking IMF financing for climate risks. He outlined strategies to increase revenue from various sectors, prioritizing effective wholesale business taxation.
Khan displayed optimism regarding the SBA’s final review, citing compliance. He emphasized the need for a more extensive program to maintain macroeconomic stability. Reflecting on 2023, he noted stability improvements, cautioning against unsustainable growth methods.
Moreover, Khan stressed the importance of executing economic reforms, including discussing Pakistan’s economic growth potential. He highlighted digitalization as key to reforming the FBR and tackling revenue leaks.
With his banking background, Khan underscored digitization’s efficiency benefits. He announced that data analytics teams were being hired for the FBR. The government plans to privatize state-owned enterprises (SOEs) significantly, starting with PIA.
Lastly, Khan addressed inflation, suggesting a potential policy rate decrease to aid businesses while recognizing the monetary policy committee’s independence.
