Pakistan’s Finance Minister, Mohammad Aurangzeb, highlighted the country’s focus on meeting external financing needs through foreign investment and loan rollovers in preparation for the new $7bn IMF agreement. Tough measures, such as tax increases and electricity price hikes, have raised concerns about rising inflation and higher taxes for the poor and middle-class in Pakistan.
Aurangzeb emphasized the importance of direct investment and climate financing for sustainable economic growth. The government plans to diversify its strategy beyond loan rollovers towards foreign direct investment, particularly in projects like the Reko Diq mine.
Despite facing numerous IMF bailouts in the past, Aurangzeb remains optimistic about Pakistan’s ability to manage its external financing gap. The government is also exploring climate financing options to address the challenges posed by climate change, such as the devastating floods that occurred in 2022.
As Pakistan continues to navigate through economic challenges, the government is committed to implementing necessary reforms, including privatizing loss-making enterprises like Pakistan International Airlines. Overall, the goal is to achieve economic stability and growth without being overly reliant on external financial assistance.
[Source: Dawn]
[Image: Click here for image source](https://i.dawn.com/large/2024/07/2007562836113c2.jpg?r=075825)\
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