ISLAMABAD: Finance Minister Muhammad Aurangzeb has expressed confidence that Pakistan will soon receive positive news from the International Monetary Fund (IMF), saying that the country is on track to meet the global lender’s economic targets.
Speaking to journalists on Friday, the minister stressed that discussions with the IMF are progressing smoothly and that the ongoing talks will conclude soon.
The minister underscored the government’s commitment to economic reforms, adding that Pakistan is adhering to the agreed-upon financial framework.
He went on to say the country remains focused on fiscal responsibility, which will help secure the next tranche of funding.
Pakistan and the IMF have made substantial progress toward finalizing a Staff-Level Agreement (SLA) for the first review of the $7 billion loan programme.
IMF Mission Chief to Pakistan Nathan Porter, in a statement last week after concluding his visit, said: “The IMF and the Pakistani authorities made significant progress toward reaching a Staff Level Agreement on the first review.”
The IMF team, led by Porter, visited Pakistan from February 24 to March 14 to hold discussions on the first review of Pakistan’s economic program under the EFF, as well as the potential for a new arrangement under the IMF’s Resilience and Sustainability Facility (RSF).
If the IMF approves the first review of the loan, the country is in line to receive about $1bn as the second instalment of the loan package.
Climate change threats
Speaking at an event, the finance minister addressed the growing challenges posed by climate change, emphasising the rapid melting of glaciers, the economic disruptions caused by fog in Lahore, and the country’s increasing vulnerability to environmental shifts.
Aurangzeb highlighted the importance of establishing a structured climate financing system to tackle these challenges. He shared that Pakistan had engaged in productive discussions with the IMF over the past two weeks regarding climate financing and disaster recovery.
He also revealed that international donors have pledged $10 billion for flood rehabilitation projects. He stressed the need for practical and actionable climate projects to secure future financial support.
