Federal Finance Minister Muhammad Aurangzeb has said that negotiations on a new billion dollar loan agreement with the IMF have started.
In an interview given to the French news agency in the US capital, Finance Minister Mohammad Aurangzeb said that negotiations with the International Monetary Fund (IMF) on a new multi-billion dollar loan agreement for the economic reform program have been started.
He said that under the ongoing program agreement with the IMF, the final installment of $1.1 billion is likely to be approved by the end of this month. Along with this, Pakistan has also started negotiations for a new long-term multi-billion dollar loan program.
Mohammad Aurangzeb said that at present the business climate in the Pakistani market is excellent and due to the restoration of investors’ confidence, we are expecting better results in the current financial year than in the past. It is for this reason that the new government has begun negotiations to join the IMF’s new expansion program for more funds.
According to AFP, the IMF spokesman said regarding ongoing and future programs with Pakistan that the institution’s focus is currently on the completion of the current standby agreement, which is due to be completed soon, but in the meantime, in Pakistan. The incoming government has also expressed interest in a new programme, which is likely to be discussed at an early stage.
The Federal Finance Minister said that Pakistan will request a minimum 3-year program from the IMF for the full implementation of the economic reform policy. He said that next month, progress will be made in this regard.
In response to a question, the Federal Finance Minister said that the government is keen to increase trade relations with two major global economies. He said that America is our biggest trading partner and it has always helped Pakistan in terms of investment. Similarly, huge investment programs through CPEC are part of Pakistan’s policy.
He said that the government is now seriously looking at the privatization of loss-making enterprises and the privatization of PIA is at the top of the list. Next month there will be good progress in this regard. We wish to finalize the privatization of PIA by the end of June.
