Finance Minister Muhammad Aurangzeb made a significant announcement, emphasizing that Pakistan is seeking investment rather than aid from friendly countries. He also mentioned that the International Monetary Fund (IMF) Executive Board is expected to approve a $7 billion Extended Fund Facility (EFF) for Pakistan by the end of this month.
The finance minister shared these insights while speaking to the media after the ground-breaking ceremony of the new head office building for the Securities and Exchange Commission of Pakistan (SECP). When questioned about the apparent reluctance of friendly countries to support Pakistan, he reiterated that Pakistan prefers investment to aid. Additionally, he provided an update on the progress regarding the issuance of Panda Bonds.
During the ceremony, Minister Aurangzeb highlighted the recent reduction in the State Bank of Pakistan (SBP)’s policy rate, which he attributed to achieving macroeconomic stability. He expressed confidence in the economic team’s commitment to continue this stability agenda under the leadership of the Prime Minister, emphasizing that stabilization is crucial for fostering growth.
The minister also mentioned the Staff Level Agreement (SLA) with the IMF, which is set to be presented to the Executive Board for final approval. He stressed that this IMF program should be the last one for Pakistan, highlighting the necessity of undertaking structural reforms, particularly in energy, taxation, state-owned enterprises (SOEs), and privatization. He emphasized the importance of moving forward with these reforms to ensure sustainable economic development.
Minister Aurangzeb stated that the government will provide a robust policy framework and ensure policy continuity, but the private sector must lead the country’s economic development. He emphasized the need for a market-driven approach, focusing on export-led growth and foreign direct investment (FDI) in export-oriented industries. He pointed out that relying on borrowing from abroad has led to currency mismatches, causing economic challenges. Instead, he advocated for borrowing that funds projects generating foreign currency for the country.
The minister underlined the SECP’s crucial role in the capital market and stressed the importance of fiscal discipline to reduce government borrowing. He recalled that the idea for the SECP building was conceived 24 years ago and urged the SECP to complete the construction within a year. He reaffirmed the Ministry of Finance’s full support for the SECP.
Deputy Prime Minister and Foreign Minister Ishaq Dar also spoke at the ceremony, noting that the establishment of the SECP’s independent building marks a significant step towards the institution’s financial autonomy. He shared that the plot of land for the head office was approved by the government in 2017. Dar emphasized the SECP’s ongoing role in the country’s economic development and pledged the government’s support in implementing key reforms in the regulatory framework.
He highlighted Pakistan’s potential for economic development and market growth, citing the country’s abundant mineral resources. Dar encouraged the youth to remain hopeful about Pakistan’s resilience and economic potential.
SECP Chairman Akif Saeed, along with other senior officials, attended the ceremony. Chairman Saeed announced the introduction of radical reforms in the SECP’s regulatory frameworks to facilitate ease of doing business and investment processes. These reforms aim to attract more investments and promote a business-friendly environment in Pakistan.
