On his inaugural day in Washington, Finance Minister Muhammad Aurangzeb of Pakistan articulated the nation’s stance on crucial global issues while laying out plans for economic reform and climate resilience. Addressing an audience at the Atlantic Council think tank, Minister Aurangzeb emphasized the importance of implementing existing policies rather than seeking new ones, asserting Pakistan’s readiness to undertake necessary reforms.
The minister underscored Pakistan’s vulnerability to climate change despite not being a major emitter, calling for assistance from international financial institutions like the World Bank and IMF to combat its effects. He advocated for increased financial inclusivity and highlighted the imperative of empowering women in the national economy. Aurangzeb’s remarks set the tone for Pakistan’s engagement at the spring meetings of the World Bank group and discussions for a new IMF loan package.
Expressing Pakistan’s desire for a longer-term program with the IMF to facilitate structural reforms, Minister Aurangzeb conveyed the government’s commitment to fulfilling its obligations. He disclosed ongoing negotiations with the IMF, aiming for a timely conclusion to secure an Extended Fund Facility (EFF) package. Pakistan anticipates further talks with an IMF mission visiting Islamabad next month, alongside negotiations for increased financing with the World Bank.
In addition to financial assistance, Aurangzeb emphasized the importance of expanding the tax base and reforming tax collection systems to enhance revenue generation and transparency. He advocated for public-private partnerships, stressing the government’s limitations and the necessity for timely decision-making and execution to stimulate economic growth.
Commencing his official engagements, Minister Aurangzeb met with a delegation from the US-Pakistan Business Council to highlight Pakistan’s commitment to attracting foreign and domestic investments across key sectors such as agriculture, IT, mines & minerals, and energy. Furthermore, he engaged with Mohamed Nasheed, former president of the Maldives and head of the Climate Vulnerable Forum, discussing Pakistan’s vulnerability to climate change and its efforts to address climate challenges.
As Pakistan navigates its economic reforms and seeks support for climate resilience, Minister Aurangzeb’s diplomatic efforts underscore the nation’s commitment to sustainable development and global cooperation in tackling pressing challenges.