ISLAMABAD: Pakistan’s foreign exchange reserves will reach “somewhere between $9 billion and $10 billion” by the end of June, Finance Minister Mohammad Aurangzeb said on Tuesday, as the country’s cash-strapped economy steadily gains momentum. He emphasized that we are moving in the right direction. Aurangzeb made the remark while addressing the first session of the 7th Islamic Business Leaders Summit held in Islamabad, saying that the expected ranking in June is “where we are.” “We would be in a much better position given the circumstances.” [in the previous year]” reported the Dawn newspaper.
He said Pakistan’s foreign exchange reserves would reach “between $9 billion and $10 billion” by the end of June.
Pakistan’s foreign exchange reserves fell below $8 billion in late February, but rose above the $8 billion level again last month.
Aurangzeb said the International Monetary Fund (IMF) should be seen as a “means to an end, not an end.”
The Minister commented on the current Standby Agreement (SBA) with global financial institutions and considered it important to participate in this program. “It was absolutely important that we did it as a country for a reason. There’s no plan B. When you’re in a situation like I said where the import coverage period has been reduced to 15 days; “There is no plan B,” he said.
The finance minister said the government is working with the IMF on a longer-term, larger-scale program for two reasons: to “bring permanence to this macroeconomic stability” and to implement its economic structural reform agenda. He said that consultations have begun.
“I have always said that this country does not need policy prescriptions. We have known for a long time what we are going to do and why we are going to do it, we just don’t do it,” Aurangzeb said. He added that there was a need for “execution.” mode”.
“We need to move towards sustainability,” he stressed, warning that otherwise reforms cannot be implemented.
Aurangzeb also said that the energy equation is the “first priority” when it comes to the sustainability of reforms, whether they relate to the power sector or the oil sector.
Regarding tax challenges, the minister said, “One is the gap between policy and enforcement, and the other is clearly the incorporation of under-taxed and non-taxed sectors into the net.”
Cash-strapped Pakistan has formally asked the IMF for another bailout in the range of $6 billion to $8 billion, including possible support from climate finance.
“I hope that by the end of June or the beginning of July there will be a consensus at the staff level and that we will be able to move towards an end,” the finance minister said.“The IMF is a means to an end, not an end in itself.” No,” he said. He said.
Pakistan’s current $3 billion agreement with the IMF expires in late April, and the government is seeking more support to perpetuate macroeconomic stability and support the country under an umbrella that can carry out much-needed structural reforms. They are looking for long-term, large-scale financing.
In March, IMF staff and Pakistani authorities reached a staff-level agreement for a second and final review, which was then sent to the IMF Executive Board for final approval. If approved, Pakistan would have access to approximately $1.1 billion.
Previous statements from IMF and Pakistani officials indicate that the board will not only convene on April 29, but also approve the release of the final tranche of $1.1 billion under the SBA, signed in June 2023. was shown.
After contracting in 2023, Pakistan’s economic growth is projected to recover to 2% in 2024, supported by continued positive fundamental effects in the agriculture and textile sectors.
He said Pakistan’s foreign exchange reserves would reach “between $9 billion and $10 billion” by the end of June.
Expanding
Pakistan’s foreign exchange reserves fell below $8 billion in late February, but rose above the $8 billion level again last month.
Aurangzeb said the International Monetary Fund (IMF) should be seen as a “means to an end, not an end.”
The Minister commented on the current Standby Agreement (SBA) with global financial institutions and considered it important to participate in this program. “It was absolutely important that we did it as a country for a reason. There’s no plan B. When you’re in a situation like I said where the import coverage period has been reduced to 15 days; “There is no plan B,” he said.
The finance minister said the government is working with the IMF on a longer-term, larger-scale program for two reasons: to “bring permanence to this macroeconomic stability” and to implement its economic structural reform agenda. He said that consultations have begun.
“I have always said that this country does not need policy prescriptions. We have known for a long time what we are going to do and why we are going to do it, we just don’t do it,” Aurangzeb said. He added that there was a need for “execution.” mode”.
Expanding
Aurangzeb also said that the energy equation is the “first priority” when it comes to the sustainability of reforms, whether they relate to the power sector or the oil sector.
Regarding tax challenges, the minister said, “One is the gap between policy and enforcement, and the other is clearly the incorporation of under-taxed and non-taxed sectors into the net.”
Cash-strapped Pakistan has formally asked the IMF for another bailout in the range of $6 billion to $8 billion, including possible support from climate finance.
“I hope that by the end of June or the beginning of July there will be a consensus at the staff level and that we will be able to move towards an end,” the finance minister said.“The IMF is a means to an end, not an end in itself.” No,” he said. He said.
Pakistan’s current $3 billion agreement with the IMF expires in late April, and the government is seeking more support to perpetuate macroeconomic stability and support the country under an umbrella that can carry out much-needed structural reforms. They are looking for long-term, large-scale financing.
In March, IMF staff and Pakistani authorities reached a staff-level agreement for a second and final review, which was then sent to the IMF Executive Board for final approval. If approved, Pakistan would have access to approximately $1.1 billion.
Previous statements from IMF and Pakistani officials indicate that the board will not only convene on April 29, but also approve the release of the final tranche of $1.1 billion under the SBA, signed in June 2023. was shown.
After contracting in 2023, Pakistan’s economic growth is projected to recover to 2% in 2024, supported by continued positive fundamental effects in the agriculture and textile sectors.
