FinMin Aurangzeb heads to US for key World Bank, IMF meetings
Business
Finance Minister Aurangzeb has left for the US to attend IMF and World Bank meetings, discussing new economic targets, flood impact, and potential adjustments to Pakistan’s macroeconomic framework.
ISLAMABAD (Dunya News) - Federal Finance Minister Mohammad Aurangzeb has departed for the United States to represent the country at the upcoming meetings of the International Monetary Fund (IMF) and the World Bank.
Sources said the minister is scheduled to hold crucial meetings with officials from the IMF, World Bank, International Finance Corporation (IFC), and Multilateral Investment Guarantee Agency (MIGA).
A significant highlight of his trip will be a face-to-face meeting with Ajay Banga, the President of the World Bank, where key economic issues are expected to be discussed.
Aurangzeb is also set to participate in policy-level negotiations with the IMF mission, where new economic targets for the upcoming month will be outlined for Pakistan’s economic team.
In the wake of the devastating floods, discussions are anticipated to focus on the reduction of economic growth and tax targets. The final approval for any relaxation of these targets will need to come from the IMF Executive Board.
It is worth noting that any changes to Pakistan’s macroeconomic framework will be made based on the request of the economic team.
Meanwhile, virtual negotiations between Pakistan and the International Monetary Fund (IMF) are ongoing as both sides work toward reaching a staff-level agreement, with discussions currently focused on four major points.
Also Read: Govt, IMF in final stage to finalise $1.2bn tranche agreement
According to sources in the Ministry of Finance, provinces have requested more time to implement agricultural income tax, citing the devastating impact of recent floods on the agrarian economy. Due to the damage, provinces are not immediately willing to enforce this tax.
The official wheat procurement policy is now being included in the IMF’s Memorandum of Economic and Financial Policies (MEFP). The IMF has asked Pakistan to outline a mechanism for wheat procurement that may involve open market purchases or private sector engagement, instead of relying solely on government procurement channels.
Negotiations also include the requirement for public officials to declare their assets, and discussions around the Corruption and Governance Diagnostic Assessment Report. The government has requested more time to publish this sensitive report.
Pakistan’s economic team has asked the IMF for relaxation in certain structural benchmarks to allow for faster finalization of the agreement.
