IMF-Backed Reforms in Taxation, Privatization, SOEs Now Unavoidable: Finance Minister

The government now has no other choice but to proceed with crucial reforms in taxation, privatization, energy and State-Owned Enterprises (SOEs) backed by the International Monetary Fund (IMF), Finance Minister Muhammad Aurangzeb said on Thursday. The minister said such reforms were unavoidable and the government could no longer delay them. Aurangzeb said recent economic developments, such as Fitch’s credit rating upgrade (CCC to CCC+) and the State Bank of Pakistan’s (SBP) decision to lower the policy rate were signs of macroeconomic stability. He urged maintaining current progress to achieve growth. The minister further recommended that the private sector should manage the entire insurance industry to enhance efficiency. He called for export-led growth and increased foreign direct investment. He was of the view that external borrowing should fund projects that generate foreign currency for the country, while the equity and debt markets should play a more prominent role in supporting the economy.