Finance Minister Muhammad Aurangzeb offered a ray of optimism on Tuesday, stating that the nation’s foreign exchange reserves will exceed $10 billion by June of this year, as the government moves quickly to solve the grave economic conditions that now exist.
At the 2024 Islamabad Business Summit, Aurangzeb stated, “The nation’s foreign exchange reserves have increased […] and will reach $10 billion by June [this year].”
The finance czar emphasized the necessity of energy sector reforms and the importance of “essential” privatization of businesses that generate losses.
Regarding the matter of the nation requesting a further bailout program from the International Monetary Fund (IMF), the finance minister called it “essential” and mentioned that contacting the Washington-based lender is sometimes a nation’s “last resort.”
His comments coincide with Islamabad’s official request to the IMF, made a few days ago, for a new rescue package under the Extended Fund Facility (EFF) with potential for augmentation through climate funding. The package was to be valued at between $6 and $8 billion.
A day earlier, the Finance Minister said in an interview with The National that the IMF has been quite accommodating when it comes to agreeing to take a closer look at a lengthier, more comprehensive program. But the precise scope and duration won’t be decided upon until May 2024, when a consensus has been reached on the main features of the upcoming program.
