Federal Finance Minister Muhammad Aurangzeb met with the new IMF representative to Pakistan, Mahir Binici, to discuss the ongoing economic situation and the upcoming IMF loan program.

Minister Aurangzeb reiterated the government’s commitment to the successful completion of the IMF's 37-month program, emphasizing that the $7 billion loan is viewed as Pakistan's own program. "The loan program aims at fiscal and structural reforms," he highlighted.

He also noted the importance of maintaining the trust and credibility restored over the past 14 months, stating that this trust is crucial for sustainable and inclusive development.

A statement issued at the end of the meeting stated, "The new program is supported by the IMF."

During the meeting, the finance minister welcomed Maher Binici to his new role and assured him of full cooperation with the government in ensuring the successful completion of the IMF program. The IMF representative expressed his commitment to working closely with Pakistan’s government to achieve the program's objectives.

Positive developments

Meanwhile, Adviser to the Minister of Finance on Economic and Financial Reforms, Khurram Shahzad, shared positive developments in the country’s economic situation. He reported that inflation has significantly decreased, reaching its lowest level in 78 months (6.5 years), and that the reduction in inflation is positively impacting the people.

The possibility of lowering interest rates is also increasing, as well as a positive impact on businesses, industries, debt repayments, and fiscal balance.

Shahzad also pointed out that Pakistan International Airlines (PIA) and a private Pakistani airline have regained access to European markets. Furthermore, the trade deficit for November 2024 dropped by 19% year-on-year to $1.6 billion, while exports grew by 9% and imports decreased by 3%. The current account surplus for November, likely at $3 billion, was driven by strong remittance inflows.

The overall trade deficit in the five months decreased by 7% to $8.7 billion, said the adviser. In addition, foreign exchange reserves have reached a 33-month high, enough to cover two and a half months of imports. The rupee also appreciated to Rs277.9 against the dollar, reflecting positive trends in Pakistan's economic outlook.