Pakistan announces the current IMF program will be its final one.

Federal Finance Minister Muhammad Aurangzeb has confidently stated that Pakistan’s ongoing International Monetary Fund (IMF) program will be its last, reflecting optimism about the country’s economic reforms and future direction.

In an interview with Nikkei Asia, Aurangzeb affirmed Pakistan’s dedication to completing IMF-agreed reforms while transitioning to a development-focused economic model.

He pointed out improvements in Pakistan’s sovereign credit ratings following the IMF bailout and noted a sharp decline in inflation, which fell from a peak of 38% in May 2023 to just 3%, thanks to effective economic policies. Aurangzeb expressed optimism that Pakistan could secure a “B” rating from global credit agencies, further enhancing investor trust.

The government is prioritizing export growth and foreign investment to stabilize the economy. Aurangzeb disclosed plans to re-enter global financial markets, including leveraging the yuan bond market to diversify funding sources, with a Panda Bond expected to be issued by the fiscal year’s end.

Also Read: $40 Billion Deal: World Bank to Support Pakistan’s Development Over 10 Years

Highlighting the importance of collaboration with China, the finance minister announced that the Pakistani-Chinese joint venture, Service Long March, is set to list shares on the Hong Kong stock market. This venture focuses on manufacturing truck and bus tires, underscoring strengthening industrial ties between the two nations. Additionally, Hong Kong is preparing to facilitate corporate stock listings, providing new opportunities for Pakistani businesses to access global markets.

Aurangzeb also emphasized the government’s commitment to ensuring the safety of foreign nationals, including Chinese citizens, in Pakistan, with robust security measures in place. “The security of foreign nationals is our top priority,” he stressed.

With inflation under control and reforms yielding positive results, Aurangzeb expressed confidence in Pakistan’s economic future. “This will be the last IMF program,” he declared, signaling a pivot toward sustainable growth and economic independence.

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