ISLAMABAD, Aug 1 (Alliance News): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, emphasized the need for structural reforms to ensure the current Extended Fund Facility (EFF) with the International Monetary Fund (IMF) is Pakistan’s last program.
He highlighted the importance of privatization, export-led growth, and foreign direct investment (FDI) for sustainable macroeconomic stability.
Speaking at the Ground Breaking Ceremony of the Securities and Exchange Commission of Pakistan (SECP) Head Office Building, the minister announced that a Staff Level Agreement (SLA) has been signed with the IMF, which will soon go to the fund’s board for final approval. “Under the fund umbrella, it is not only about getting the funds but making sure we implement structural reforms,” he stated.
The minister stressed that if Pakistan is to make this the last IMF program, then reforms in taxation, energy, state-owned enterprises (SOEs), and privatization are essential. “We cannot afford to delay this agenda any longer,” he remarked.
He noted that Pakistan’s upgraded rating by Fitch and the policy rate reduction by the State Bank of Pakistan (SBP) are clear indicators of the macroeconomic stability achieved under Prime Minister Shehbaz Sharif’s leadership. The minister added that while the economic team will continue to pursue this agenda, it is crucial to make these changes permanent. “Stabilization should lead to growth, so we need to ensure permanence,” he said.
Discussing the role of the private sector, Senator Aurangzeb announced that the cabinet committee on SOEs has decided to hand over all public sector insurance companies to the private sector. He emphasized that the government should not hold on to these entities and that even strategic functions should be managed privately, with the government providing policy frameworks and continuity.
“The private sector must lead this country,” he asserted, adding that the entire insurance sector should be managed by the private sector.
The minister also highlighted the need to foster export-led growth and attract FDI, particularly for export-oriented industries, to avoid currency mismatches caused by foreign borrowing. “If we borrow from abroad, it should be for projects that generate foreign currency,” he explained.
He emphasized the importance of accessing international capital markets to diversify the country’s funding base, reducing dependence on banks for both government and private sector funding. He added that capital markets can bring modernity, efficiency, and transparency, with the SECP ensuring these markets remain fair, transparent, and accountable.
The minister concluded by noting that the idea of the SECP building was conceived 24 years ago and expressed hope that it would be completed soon.
