———- Says WB to give Pakistan grant instead of loan
———- Adds will try to make this IMF programme our last
———- Avers US business communities willing to invest in Pakistan, with stakeholders appreciating drop in inflation
———- Dependence on foreign loans has dropped, says SBP Governor
By Asghar Ali Mubarak
ISLAMABAD: Finance Minister Senator Muhammad Aurangzeb on Sunday said that his meetings with stakeholders in the United States remained positive, adding that the stakeholders appreciated the scaling down of inflation in Pakistan.
He made these remarks after concluding his visit to Washington to participate in the World Bank (WB) and International Monetary Fund (IMF) Annual Meetings from October 21 to 26.
The finmin held a series of meetings with the leaders from several international finance institutions and authorities including rating agencies, multinational banks, WB, IMF and the Asian Development Bank (ADB). Aurangzeb said that the US business communities were willing to invest in Pakistan as all rating agencies stated the economy was moving in the right direction.
He also apprised media that the WB would give Pakistan a grant instead of loan. Whereas, he said, the government would try not to take a loan from the IMF anymore.
“We have had constructive discussions with the IMF. We will try to make this IMF programme our last programme,” he said, adding due to the government’s initiatives, the country was advancing towards macroeconomic stability.
The finance czar also warned that the government might have to make arduous decisions for enhancing the economy. “We are abolishing the term of non-filer. The non-filers will not be able to buy cars and properties and we will need a legal cover for that purpose,” he said.
The finance minister said they had been working continuously for six months for economic improvement and bringing reforms in the Federal Board of Revenue (FBR) was a step in the same direction. He said the tax-to-GDP ratio would be brought from 9% to 13%.
He also said the country’ foreign exchange reserves had risen above $11 billion.
Aurangzeb said the IT and agriculture sectors held the status of game changer for the country’s development, therefore, we would have to boost its export.
On privatisation, he said three electricity distribution companies would be privatised in the first phase.
Meanwhile, State Bank of Pakistan Governor Jameel Ahmed said country’s debt was $100 billion in June 2022, which had fallen to 98.3 billion dollars. Dependence on foreign loans had been cut, he added.
On the other hand, the finance minister held various meetings with leaders of different global finance companies on Saturday as well. Separately, during a meeting with Regional President for VISA Andrew Torre in Washington, FinMin Aurangzeb appreciated VISA’s commitment to modernising Pakistan’s payments ecosystem, including support for domestic payment players like 1Link.
He commended VISA’s efforts in promoting financial inclusion and supporting entrepreneurs in Pakistan.
Both parties agreed on the importance of offering more routing choices for clients and ensuring a level playing field for domestic transaction processing.
Global Head of Corporate and Investment Banking Business of Natixis Mohammad Kallala called on the finmin in Washington DC and briefed him on Natixis’ operations and strong presence in infrastructure, renewables, transportation, aviation, telecom and tech sectors.
The two discussed opportunities for partnership with Gulf investors, particularly from Saudi Arabia, to provide financing and advisory support for investments into Pakistan.
Kallala shared that the bank aimed to collaborate with a select group of leading Pakistani companies to facilitate the investments.
Both sides agreed on the importance of maintaining continued engagement in the future.
Vice President and Global Head of Government Affairs and Public Policy at Google Karan Bhatia also called on Aurangzeb in Washington.
During the meeting, Karan Bhatia provided an overview of Google’s recent activities and engagements in Pakistan, along with their plans to deepen investments and make tangible economic contributions in the country.
He raised regulatory, legislative, connectivity, and financial concerns. The Finance Minister assured full support in this regard.
In meeting with China’s Vice Minister of Finance Liao Min in Washington, the finance minister reaffirmed the all-weather strategic cooperative partnership between Pakistan and China.
He thanked the government of China for its unwavering support to Pakistan’s socio-economic development and assistance in securing the IMF’s Extended Fund Facility.
Aurangzeb added that Pakistan was eager to learn from China’s experience with economic reforms. He also welcomed BYD’s decision to introduce electric vehicles in Pakistan.
The minister said that the government aimed to launch an inaugural Panda bond in the Chinese market to diversify its financing base.
The finance minister shared that the majority of Chinese companies were interested in expanding their investments and increasing employment opportunities in Pakistan.
“The government is committed to provide foolproof security to Chinese workers,” he emphasised.
He also requested the Chinese side to raise the limits under the Currency Swap Agreement to CNY 40 billion.
Both sides stress upon the need for online payment settlements and integration of the two countries’ payment systems.
