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Finance Minister Rules Out Mini-Budget, Confirms IMF Talks Successful
Finance Minister Muhammad Aurangzeb assures no mini-budget is coming and Pakistan’s tax target of Rs. 12,970 billion will be achieved.
ND
by News Desk
2024-11-16
Finance Minister Rules Out Mini-Budget, Confirms IMF Talks Successful

Finance Minister Muhammad Aurangzeb dismissed speculations about a mini-budget, affirming that the government is on track to meet the tax collection target of Rs. 12,970 billion for the current fiscal year.

 

Speaking to Geo News, the minister highlighted Pakistan’s success in achieving its primary surplus target and emphasized that the National Fiscal Pact has already been approved by the federal cabinet. "There is no need to revise the NFC award at this stage," he said.

 

Tax Measures and Economic Stability

Aurangzeb assured that the tax collection goal would be realized through improved enforcement and administrative measures. “We are committed to enhancing our tax base and ensuring collections remain robust,” he stated.

 

The minister expressed gratitude to Sindh Chief Minister Murad Ali Shah for supporting the Fiscal Pact, showcasing collaborative efforts between federal and provincial governments to maintain fiscal discipline.

 

Constructive Engagement with IMF

Discussing the recent visit of the International Monetary Fund (IMF) delegation, Aurangzeb clarified that the visit was not an economic review but aimed at building confidence.

 

“The discussions with the IMF were open, fact-based, and constructive. We exchanged perspectives on several ongoing reforms,” he said, adding that the IMF delegation seemed satisfied with Pakistan’s commitment to economic reform.

 

The face-to-face discussions covered key areas, including energy sector reforms and privatization plans. “We are making progress on privatizing Genco, Discos, and airports to streamline operations and attract investment,” the minister noted.

 

Right-Sizing in Government Departments

Aurangzeb also provided updates on government restructuring efforts, revealing that right-sizing has been completed in 11 departments, with work underway in five others. These measures aim to enhance efficiency and reduce unnecessary expenditures.

 

Energy Sector Reforms

The talks with the IMF also delved into reforms within the energy sector. The government reiterated its commitment to addressing structural issues in the sector to ensure sustainable energy delivery and financial stability.

 

Conclusion

The finance minister’s reassurances come as Pakistan navigates critical fiscal challenges. His optimism about achieving the tax target and the positive IMF feedback are seen as steps toward stabilizing the country’s economy. However, successful implementation of reforms, particularly in the energy sector and privatization initiatives, will be crucial in maintaining this momentum.

 
Tagged:

PakistanEconomy

EconomicReforms

FiscalPolicy

TaxCollection

IMFTalks
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