Finance minister highlights IMF engagement and economic reforms in Senate briefing

ISLAMABAD: Finance Minister Muhammad Aurangzeb informed the Senate Standing Committee on Finance that the International Monetary Fund (IMF) has recognized Pakistan’s recent macroeconomic achievements and ongoing reform efforts. The committee meeting, chaired by Saleem Mandviwalla, addressed a range of economic issues, including the impact of regional conflicts and regulatory measures affecting parliamentarians.

During the session, lawmakers expressed concerns over what they described as ‘surveillance’ of parliamentarians and their families under the guise of regulatory compliance. In response, Aurangzeb defended the government’s banking restrictions, stating that these measures are necessary to prevent Pakistan from being placed back on the Financial Action Task Force (FATF) grey list.

The finance minister stated that the IMF review mission had appreciated the steps taken by Pakistan up to February. He added that both parties have agreed to continue discussions, particularly regarding the potential effects of the ongoing Middle East conflict on Pakistan’s inflation, revenue, and current account. Aurangzeb noted that the review would also cover external financing, inflation trends, revenue generation, the current account balance, and the performance of remittances, all in the context of recent regional developments.

He emphasized the importance of maintaining economic stability, describing it as ‘hard-earned,’ and reiterated the government’s commitment to engaging with the IMF and friendly countries to advance economic reforms. The minister assured the committee that all regulatory actions are aligned with international standards and are crucial for safeguarding the country’s financial system.