WASHINGTON, Apr 27, Federal Minister for Finance Muhammad
Aurangzeb has said that the International Monetary Fund (IMF) loan
programme has played a role in stabilising Pakistan’s economy.
In an interview with a foreign news agency in Washington, he has said
that Pakistan has started a new programme with the IMF under the climate
financing.
He has expressed the hope that the IMF Board will approve a $1.3 billion
programme for Pakistan at the start of May.
The minister has admitted that tense relations with India will have
adverse effects on the country’s economy. “The volume of trade between
the two countries has already shrunk. “Last year, the trade volume stood
at $1.2 billion,” he has informed.
Aurangzeb has said that the country’s economic growth rate this
financial year (FY) will remain at three percent. “However, next year it
will fluctuate between four and five percent, and the following year it
will reach six percent.”
The Finance Minister stated that Pakistan has put in a request to China
to augment its existing swap line by 10 billion yuan ($1.4 billion),
adding he expected the country would launch a Panda bond before
year-end.
China’s central bank has been promoting currency swap lines with a raft
of emerging economies, including the likes of Argentina and Sri Lanka.
He has expressed the hope that Pakistan will release Panda bonds towards
the end of the ongoing FY. “In this connection, I have had a
constructive discussion with the Asian Infrastructure Investment Bank
(AIIB) and Asian Development Bank (ADB) presidents,” the minister has
informed.
“We want to diversify our lending base, and we have made some good
progress around that – we are hoping that during this calendar year we
can do an initial print,” he said.
Aurangzeb estimated growth around 3% in the current financial year which
ends in June 2025, and in the 4-5% range next year, with a view to
hitting 6% thereafter . .