Finance Minister Muhammad Aurangzeb has confirmed that ongoing talks with the International Monetary Fund (IMF) are moving in the right direction. Addressing the Senate’s Finance Committee, he assured that the government is not planning to impose any additional taxes during the current review process.
Aurangzeb stated that discussions with the IMF so far have been productive and constructive. He also highlighted Pakistan’s successful repayment of a $500 million Eurobond and announced plans to issue $250 million Panda bonds in China, where investors have shown strong interest.
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The finance minister noted that another Eurobond payment of $1.3 billion is scheduled for April. He reaffirmed the government’s commitment to achieving a tax-to-GDP ratio of 11% by the end of the fiscal year. Addressing the current tax shortfall, he explained that several cases pending in courts are delaying collections, but resolutions could boost revenues.
Aurangzeb also touched on the regulation of cryptocurrency in Pakistan. He said progress is being made on the Virtual Assets Authority Bill and that Pakistan should explore its potential in the growing crypto economy. He emphasized that crypto was previously unregulated but is now being brought under oversight.
Formal IMF negotiations began on September 29 to review Pakistan’s $7 billion loan program and the $1.3 billion climate financing facility. The IMF team, led by its mission chief for Pakistan, will assess the impact of recent floods on the economy and budget targets. Upon successful review, the next loan tranche will be approved by the IMF board.