After the IMF meetings, FM Aurangzeb anticipates rupee stability

According to a Bloomberg story, Finance Minister Muhammad Aurangzeb stated that the administration anticipated little devaluation of the rupee after discussions with the International Monetary Fund (IMF).

Currently attending the IMF and World Bank (WB) spring meetings in Washington is the finance minister. According to him, the average annual depreciation of the rupee is between 6% and 8%.

Citing strong foreign exchange reserves, a stable currency, growing remittances, and consistent exports, Aurangzeb stated, “I don’t see the need for any step change.”

He continued by saying that although significant currency devaluations had followed prior IMF loans to Pakistan, this time a different consequence was anticipated.

“The oil price is the only thing that can be a wild card, even though our projections show that we should be alright,” he stated.

The minister also reaffirmed Pakistan’s dedication to promoting steady economic expansion and development.

The finance czar highlighted the three main areas of reform: energy, taxation, and privatization. He also mentioned that the agriculture sector had improved performance in the current fiscal year.

The minister stated that Pakistan’s key economic metrics, such as remittances, demonstrated improved outcomes and that the government was dedicated to pursuing a more comprehensive expansion program with the IMF.

Additionally, he stated that Islamabad anticipated an IMF mission to come to the nation in May in order to get a staff-level agreement on the next loan program by the end of June or the beginning of July.

Prior to the follow-up program, IMF Managing Director Kristalina Georgieva identified tax base, increased contributions from the wealthy, and openness in public expenditure as critical concerns that Pakistan needed to address to strengthen its economy.

Georgieva emphasized that Islamabad still had significant problems to address, but she did indicate that the country was in talks for a program to follow up on the SBA.

“The tax base, the way the wealthier segment of society contributes to the economy, the direction of public spending, and of course, creating… a more transparent environment are very important issues to be solved in Pakistan,” the speaker stated.

Georgieva went on to say, “The nation is looking to the fund for potentially having a follow-up program and there is a commitment to continue on this path,” underscoring the unresolved problems that Pakistan still needed to deal with.