Islamabad: Minister for Finance and Revenue Muhammad Aurangzeb said that he expected foreign exchange reserves held by State Bank of Pakistan to close this fiscal year at around $ 9-10 billion mark. In keynote address at inaugural session of 7th Leaders Business Summit themed ‘Collaborating for Growth’, Aurangzeb said he expects to reach staff-level agreement with International Monetary Fund by June-July.

He said government has taken steps to stabilise economy and promote growth opportunities. Senator said SBP’s foreign exchange reserves have jumped from $ 3.4 billion last year, equivalent to only 15 days of import cover, to over $ 8 billion.

“Once final tranche comes from IMF by end of this week, our foreign exchange reserves will be over $ 9 billion, and by time of end June, our reserves will be anywhere between $ 9-10 billion, which is going to be equivalent to two months of import cover,” he said.

Dismissing negative impression of IMF programme, Aurangzeb termed it as “Pakistan’s programme, which is helped, supported and assisted by Fund”.

“This is our requirement as country if we want to get out of trap we are in.”

In talks with IMF, he shared that Pakistani authorities had “Very good discussion in Washington, with view that we go for “larger and longer programme”.

“We’ll start discussions on contours of programme when IMF mission visits Pakistan in middle of May, and we are hoping that if all goes well, and we agree on privatisation, we can get into staff-level agreement by end of June or early July, so that we could move on,” he said.

He said that GDP is expected to grow by 2.6 percent in FY 2024, whereas inflation rate is expected to be 24 percent in FY 2024.

Aurangzeb reiterated that country is “In good place, and this was ushered by nine-month SBA, which was taken through finishing by current Prime Minister”. On SOE reforms and privatisation, he said that privatisation of PIA is in progress. “Expression of Interest had been submitted and we expect bids to come in,” he said.

Published in The Daily National Courier, April, 24 2024

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