Finance Minister Aurangzeb Announces Final IMF Program, Highlights Economic Reforms

In a press conference held in Islamabad, Federal Finance Minister Muhammad Aurangzeb revealed that Pakistan has successfully concluded its final program with the International Monetary Fund (IMF). The minister emphasized that the country’s economy is moving in the right direction, with significant improvements in foreign reserves and export growth.

Aurangzeb highlighted the importance of increasing tax revenues to ensure long-term economic stability, noting that macroeconomic stability is not an end goal but rather a path to sustained progress. He shared that the government had rejected offers of treasury bills and bonds for local debt.

The finance minister also pointed out the notable increase in Pakistan’s foreign reserves, which have reached a historic high. In addition, the country has seen growth in both exports and IT exports, reflecting renewed investor confidence in the economy.

Aurangzeb reported a reduction in the policy rate by 4.5%, expressing optimism that both the exchange rate and the policy rate would remain stable in line with expectations. He noted that Pakistan had added 732,000 new tax filers this year, bringing the total number of filers to 3.2 million. Non-filers will no longer be able to purchase property or vehicles.

Furthermore, Aurangzeb announced that six government ministries would be dissolved as part of the government’s rightsizing initiative, with 150,000 posts being eliminated.

In a positive update on inflation, he claimed that inflation had decreased to single digits as a result of government policies. He called on provincial leaders to continue taking steps to reduce inflation and urged a reduction in transportation fares due to the drop in petroleum prices.