Pakistan has lost its economic credibility, urgent reforms needed for stability - Finance Minister Aurangzeb
Pakistan's Finance Minister Muhammad Aurangzeb said on Thursday that the country has lost its economic credibility and now urgent reforms are required to achieve economic stability. He further stated, "Rapid economic reforms are necessary to restore trust."
The Pakistani government expects to secure USD 1 billion from the International Monetary Fund (IMF) next week, and the Asian Development Bank (ADB) has already provided USD 500 million in financial assistance to Pakistan, he mentioned. He made these comments during a meeting of Pakistan’s Senate Climate Change Committee, where discussions took place about the country's climate financing challenges and negotiations with international lenders.
The Finance Minister also revealed that the Pakistani government has initiated the process of issuing "Green Panda Bonds," which are issued in Chinese yuan by foreign entities, and the proceeds from these bonds will be used for green projects or assets.
Additionally, Aurangzeb announced a major change in tax policy, stating that the Ministry of Finance will now oversee tax policy, while the Federal Board of Revenue will focus solely on tax collection. He also emphasized that structural reforms are essential to achieve sustainable and inclusive economic growth.
His remarks come as Pakistan is still struggling to rebuild its economy after narrowly avoiding default in 2023 with the timely intervention of the IMF.
