The Finance Division said in a statement that Finance Minister Muhammad Aurangzeb briefed Moody’s Ratings representatives on Tuesday about Pakistan’s Staff-Level Agreement (SLA) with the International Monetary Fund IMF and the ongoing reforms in the energy sector and State-Owned Enterprises, including efforts towards “privatisation and rightsizing to enhance operational efficiency and governance.”
The finance minister emphasised at a Zoom virtual meeting how Pakistan’s macroeconomic indicators had improved as a result of the nine-month Stand-By Arrangement with the IMF.
Earlier in the month, the IMF said that it and Pakistan had come to an agreement on a $7 billion, 37-month loan package designed to strengthen stability and promote equitable growth.
The IMF said the new Extended Fund Facility (EFF) was subject to approval by its Executive Board and obtain “timely confirmation of necessary financing assurances from Pakistan’s development and bilateral partners.”
As part of the new programme, Aurangzeb told Moody’s representatives that Pakistan aims to increase revenues by 1.5% of GDP in FY 2025 and by 3% over the next three years.
He told Moody’s representatives that the government aims to achieve a primary surplus of 1% of GDP for FY 2025.
The minister also talked about Pakistan’s $9.4 billion foreign exchange reserves, stock exchange performance, 12.6% inflation in the CPI in June 2024, and a 7.7% rise in foreign remittances.
He informed Moody’s Ratings that more than 150,000 retailers have registered as first-time taxpayers.
The rating agency was notified by Aurangzeb of the increased trust of multilateral institutions in funding projects in Pakistan.
The Moody’s Ratings team expressed gratitude for the thorough briefing and confidence in Pakistan’s economic trajectory, which is being bolstered by significant fiscal changes and strategic efforts.
