<\/p>\n
Finance Minister Muhammad Aurangzeb on Friday expressed hope for reaching a Staff-Level Agreement (SLA) with the International Monetary Fund (IMF) by the end of the fiscal year (June 30), adding that there haven\u2019t been any final discussions with the Fund yet.<\/p>\n
The $3 billion standby arrangement with the global lender expires on April 11, and the two sides reached a staff-level agreement regarding the disbursal of the final tranche of $1.1bn last week<\/a>. The minister has previously voiced the government\u2019s intention to seek \u201clarger and longer\u201d<\/a> bailout package from the IMF.<\/p>\n During the gong ceremony at the Pakistan Stock Exchange, the finance minister elaborated that the details of the deal would be discussed during the spring meetings in Washington where the delegation led by him would go around \u201c14th to 15th April\u201d.<\/p>\n The finance minister elaborated that they had requested to \u201center a larger and longer programme\u201d during the SLA<\/a> discussions to which the IMF was receptive, adding that the size of programme hasn\u2019t been decided yet.<\/p>\n \u201cWe need the Extended Fund Facility (EFF) to execute the structural reform agenda,\u201d he said, \u201cThe operative word here is execution, not getting into debating clubs or policy prescriptions. We have known the what and the why for decades.\u201d<\/p>\n Aurangzeb added that the request to enter the EFF will be further formalised in spring.<\/p>\n \u201cBut there hasn\u2019t been any final discussion or agreement with them but it is our wish that by the time we wrap up this fiscal year, the SLA is reached,\u201d he stated, adding that the previous SLA was important to ensure continuity of macroeconomic stability.<\/p>\n Over implementing the reforms, Aurangzeb elaborated, \u201cAnd we have gone into the implementation stage in the last few weeks with a two-pronged strategy.\u201d<\/p>\n \u201cThere is one short-term to medium-term [phase], which is closing the gaps, stemming the leakages and the losses,\u201d he said, adding \u201cAnd the second one is phasing in the structural reforms in the medium to longer-term.\u201d<\/p>\n He gave the example of the Federal Board of Revenue (FBR)\u2019s challenge of stemming leakages: \u201cWe have the Track and Trace system \u2014 we have the functionality. [However], the implementation has been lax therefore the operational effectiveness is just not there.\u201d<\/p>\n Regarding other leakages, he mentioned that roughly Rs1.7 trillion of litigation were languishing in tribunals, adding that in conjunction with the law minister and the attorney general for Pakistan (AGP), they have asked the tribunals to make decisions in the next three months for timely execution.<\/p>\n \u201cConcurrently, we start bringing the undertaxed and untaxed sectors into the fold along with the digitalisation effort which has been done in some verticals,\u201d he said that the end-to-end digitalisation was necessary to bring transparency and a \u201csuperior client experience\u201d.<\/p>\n He said that would restore trust and confidence in this institution and also \u201cdeal with some aspects of the social contract\u201d.<\/p>\n Furthermore, the finance minister reiterated that the private sector had to lead the country while the government\u2019s job was to \u201cprovide policy framework and policy continuity\u201d and that it had \u201cno business being in business\u201d.<\/p>\n \u201cWe need both equity and debt capital markets to step up, and help in the privatisation process,\u201d he said, adding that some infrastructure projects had to be brought under the context of public-private partnership.<\/p>\n The finance minister also stressed on the importance of \u201cChinese investment and partnership\u201d.<\/p>\n He stated, \u201cI am very clear that increased cooperation between the Pakistan Stock Exchange and Chinese exchanges will not only help us here in Pakistan in deepening, widening the capital markets based here, but also in executing CPEC phase 2.\u201d<\/p>\n While talking to a group of reporters, the finance minister, when asked about decision regarding trade relations with India, stated: \u201cI cannot comment on that, this is ultimately the prime minister, cabinet and parliament\u2019s decision, but no such thing has come to my table yet.\u201d<\/p>\n As for the FBR\u2019s digitalisation agenda, Aurangzeb stated that the Request for Proposal (RFP) for a \u201cworld class consultant\u201d would be issued on April 8th and that the consultant hired would be someone who has experience in emerging markets such as Pakistan.<\/p>\n \u201cGod willing, by the end of April we will be appointing that consultant,\u201d he said.<\/p>\nTrade with India not yet brought to the table<\/h2>\n