US visit will be decisive: IMF talks described as ‘productive’

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Friday said recent talks with the International Monetary Fund (IMF) were constructive, with only a few outstanding issues remaining, and expressed confidence that a staff-level agreement would be reached soon during his upcoming visit to Washington.

Speaking virtually at a business session in Karachi attended by a visiting Saudi delegation, co-hosted by the Overseas Investors Chamber of Commerce & Industry (OICCI) and the Pakistan Business Council (PBC), Aurangzeb reaffirmed Pakistan’s commitment to private sector-led growth and deeper economic ties with the Kingdom of Saudi Arabia.

Referring to his recent interaction with Prince Mansour and the delegation during a luncheon hosted by Prime Minister Shehbaz Sharif, the minister emphasized the government’s role as an enabler, saying: “The private sector must lead the way in driving growth – our job is to provide the right ecosystem.”

Economic data shared with Saudi team

He highlighted signs of macroeconomic stability, including alignment among major global rating agencies, improved financing conditions, and a steady foreign exchange regime. Pointing to the recent USD500 million Eurobond repayment, Aurangzeb remarked, “When there is macroeconomic stability, such events become non-events, there is no drama.”

While noting that progress on economic stabilisation has been made, the minister said the government is also advancing structural reforms, particularly in taxation and energy, in consultation with the private sector. He acknowledged the critical input from both OICCI and PBC in shaping reform policies.

Aurangzeb welcomed the evolving strategic partnership with Saudi Arabia under the guidance of Minister Al-Tuwaijri and praised the kingdom’s Vision 2030 as a model of successful execution. He confirmed that Pakistan’s cabinet had approved a landmark Security Pact with Saudi Arabia, calling it a key development in broadening bilateral cooperation.

He described the Saudi delegation’s visit as timely and significant, noting that Pakistan currently enjoys “a unique confluence of favourable factors”, including macroeconomic stability and positive geopolitical momentum, with long-term partners such as Saudi Arabia, China, and the United States seeking enhanced trade and investment engagement.

Domestically, Aurangzeb said the government is conducting rapid assessments of flood damage and will prioritise local resources for immediate relief before considering external support for reconstruction efforts.

He also pointed to ongoing reforms led by the Prime Minister, including tax system overhaul and a nationwide push toward a digital, cashless economy.

Noting that nearly half of Pakistan’s economy remains undocumented, Aurangzeb said: “If we include the undocumented portion, the real size of our economy is close to a trillion dollars.”

He said digitisation and documentation will be critical A in broadening the tax base and improving fiscal governance.

Concluding his address, the minister wished the Saudi delegation success in their engagements in Karachi and Lahore and looked forward to meeting the Saudi leadership again at the upcoming Future Investment Initiative (FII) in Riyadh.

Copyright Business Recorder, 2025