ISLAMABAD, Apr 18: Pakistan is keen for an early approval for the next tranche from the IMF as a team of the global lender will visit the country next month for consultations on the upcoming review, Finance Minister Muhammad Aurangzeb has said.
Aurangzeb, who is in Washington for the World Bank-IMF Spring Meetings, was referring to the approval of an estimated USD 1.2 billion, including USD 1 billion under the ongoing 37-month Extended Fund Facility (EFF) and another USD 200 million under 28-month Resilience and Sustainability Facility (RSF).
A staff-level agreement (SLA) was signed last year at the completion of the International Monetary Fund (IMF) second review of the economy under EFF which was agreed in 2024.
Talking to the media on Friday after his news conference at the Pakistan Embassy in Washington, Aurangzeb said the reopening of the Strait of Hormuz was a “very good development”, which would ease pressure on global oil supplies, the Dawn newspaper reported.
Had the conflict persisted, it would have adversely affected everything “from economic growth to inflation”, he said.
“We hope the situation will improve, but hope is not a strategy, and that’s why we had planned for everything,” he added.
Aurangzeb said while he has discussed with IMF officials the impact of the Iran conflict on the economy, “our focus is on getting an early approval for the next tranche”.
He said he also discussed the possible consequences of the Iran crisis with the IMF, which has established facilities to support countries affected by global economic shocks.
Earlier speaking at his news conference, the finance minister briefed Pakistani media representatives on the country’s broader economic outlook, progress on reforms, and outcomes of his engagements during the World Bank-IMF Spring Meetings.
The minister said his meetings with global stakeholders, including counterparts from China, the US and the UK, focused increasingly on expanding cooperation in trade, investment and key sectors such as information technology, minerals and energy.
On the external sector, he highlighted what he described as strong performance indicators, including a current account surplus of over USD 1 billion in March, remittance inflows of USD 3.8 billion during the same month, and record inflows of USD 261 million under the Roshan Digital Account, with expectations of further growth.
He also said the Pakistani diaspora was playing an increasingly important role in supporting external sector stability through formal financial channels.
On financial sector reforms, Aurangzeb said efforts were underway to strengthen regulatory oversight and formalise exchange company operations through coordinated action between the finance ministry, the State Bank of Pakistan and law enforcement agencies.
Aurangzeb also said responsible borrowing remained central to government policy, adding that international financial platforms should be used for knowledge-sharing and peer learning rather than debt relief advocacy. (PTI)
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