FinMin for boosting regional trade
Finance Minister Muhammad Aurangzeb is interviewed during the G20 Finance Ministers and Central Bank Governors' Meeting at the IMF and World Bank's 2024 annual Spring Meetings in Washington. PHOTO: REUTERS
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Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb held a series of meetings and participated in discussions on the sidelines of World Bank and International Monetary Fund (IMF) Spring Meetings in Washington.
According to press statements released on Saturday, the finance minister discussed trade diversification and highlighted the improvement in Pakistan's macroeconomic indicators and its endeavours to stimulate investment in high-yielding projects. In a panel discussion at the IMF on the theme of "Navigating an Uncertain World," Aurangzeb emphasised the importance of promoting regional trade in the wake of global uncertainty and elevated risks, which have affected different countries.
He called for diversification of sectors and markets and the need to shift the economic model from import substitution to export-led growth. Terming the IT sector a real game changer, he recommended the integration of IT systems across government and private sector entities.
The federal finance minister held a meeting with the senior management of JP Morgan Chase, where he briefed them that Pakistan's economic indicators were moving in the right direction. He underlined the necessity of pursuing a more sustained growth trajectory to avoid the recurrence of boom-and-bust cycles.
He shared progress on the Reko Diq copper and gold mining project and said that there was a need to diversify Pakistan's markets and sectors. He expressed the desire to return to international capital markets through the launch of inaugural Panda Bond. While holding talks with senior representatives of the United States Export-Import (Exim) Bank, led by Acting First Vice President Jim Barrows, Aurangzeb briefed the bank's delegation on Pakistan's improving macroeconomic fundamentals and the fiscal consolidation measures undertaken by the government.
He pointed out that Pakistan had successfully reached a staff-level agreement with the IMF on the first review of the Extended Fund Facility and on a new arrangement under the Resilience and Sustainability Facility. He provided an update on the progress on the Reko Diq project and outlined its significance in attracting foreign investment. He sought the Exim Bank support to facilitate greater US investment in Pakistan.
The minister also expressed Pakistan's desire to engage constructively with the US to address tariff-related issues and strengthen bilateral ties.
Separately, in a meeting with UK Minister of State for International Development Baroness Chapman, the finance minister praised Chapman for the UK's longstanding partnership with Pakistan and its continued support for socio-economic development.
He briefed her on the World Bank's 10-year Country Partnership Framework for Pakistan, which has placed a strong emphasis on tackling population challenges and enhancing climate resilience.
Highlighting Pakistan's commitment to digital reforms, the federal minister underscored the importance of reducing the human interface between tax collectors and taxpayers through the use of technology.
He appreciated the role of ReMIT platform in mapping development assistance over the past two years and in formulating an effective communication strategy.
In a separate huddle, Muhammad Aurangzeb briefed US International Development Finance Corporation Acting CEO Dev Jagadesan on Pakistan's macroeconomic outlook and the potential investment projects, including the Reko Diq mining project in Balochistan. He appreciated the participation of senior US officials in the recent Pakistan Minerals Investment Forum and saw immense potential for deepening mutually beneficial cooperation between Pakistan and the US.
Aurangzeb also met International Finance Corporation Managing Director Makhtar Diop and his team on the sidelines of the IMF-World Bank Spring Meetings. While lauding Diop for his visit to Pakistan in March, he briefed the IFC delegation on the strong macroeconomic indicators of the country and the recent sovereign credit rating upgrade by Fitch, terming it external validation of the government's successful reform initiatives. The minister appreciated the IFC's support for the Reko Diq project and urged the corporation to expedite its advisory work on the Karachi airport. He agreed with the IFC MD on the need to focus more on subnational governments and build their capacities for enhanced development impact.
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