Everyone Must Contribute to the Economy, No Exceptions, Says FM Aurangzeb
Saad khan 
Islamabad: Finance Minister Muhammad Aurangzeb emphasized on Tuesday that there are no exemptions and everyone must contribute to the economy. He noted that discussions with the International Monetary Fund (IMF) for a new program are progressing positively.
Speaking at a press conference after launching the Economic Survey 2023–24, Aurangzeb highlighted that the Extended Fund Facility (EFF) would be Pakistan’s program, aided and funded by the IMF. He clarified that while there can be strategic activities, these do not need to be confined to the public sector and should be managed through public-private partnerships.
Aurangzeb reported constructive and productive discussions with the IMF, attributing it to the successful conclusion of the nine-month Stand-By Arrangement (SBA). Pakistan is committed to the IMF reform agenda, which includes increasing the tax-to-GDP ratio and reforming the energy sector and state-owned enterprises (SOEs). The government aims to continue managing external financing through rollovers and commercial bank borrowings, similar to the fiscal year 2023–24.
The minister stressed that the IMF is the lender of last resort and that the SBA was necessary to prevent a worse economic situation. Although in office for only three and a half months, Aurangzeb has always supported participation in the IMF program, even while in the private sector.
On the economic performance, he noted encouraging results in large-scale manufacturing (LSM) due to interest rates and energy prices. He praised agriculture as a key driver of growth and highlighted an unprecedented 30% growth in revenue, which allowed the federal government to present a surplus to the IMF.
Aurangzeb shared that the current account deficit projection was reduced from $6 billion to around $200 million, thanks to significant remittances. Currency stability was achieved through measures against Hundi/Hawala, smuggling, and Afghan trade transit, along with structural changes by the State Bank of Pakistan (SBP).
The minister reported that foreign exchange reserves stand at over $9 billion, not funded by debt, setting a strong foundation for the next fiscal year. Inflation decreased to 11.8% in May from 48%, prompting a policy rate reduction by 150 basis points. Monetary easing has begun, with positive market responses and renewed foreign investments.
Aurangzeb acknowledged the failure of the track and trace system and reiterated that DISCOs (Distribution Companies) must be privatized. He emphasized that they would not remain in the public sector.
Responding to a question about capacity payments, Minister of State for Energy, Ali Pervez Malik, acknowledged the burden these payments place on electricity prices, suggesting dialogue as the solution.
Aurangzeb identified agriculture and information technology as critical growth sectors that require government intervention in finance and seeds, independent of IMF constraints. He announced plans to restructure PASSCO (Pakistan Agricultural Storage and Services Corporation) to reduce government involvement in the business sector.
He concluded by noting that the recent visit to China aimed to rejuvenate the second phase of the China-Pakistan Economic Corridor (CPEC) through business-to-business meetings. Debt rollover discussions will continue.
