- The Minister of Finance emphasizes the challenges of the energy sector.
- Expresses hope for improved rating by S&P Global.
- Aurangzeb points out the huge potential in the ICT sector.
ISLAMABAD: Finance Minister Muhammad Aurangzeb, who is currently in the United States to attend the annual meetings of the World Bank and the International Monetary Fund, emphasized the improvement in economic indicators in Pakistan thanks to the strenuous efforts made by the incumbent government to confront challenges on the economic front.
During his meeting with US Assistant Secretary of State for Energy Resources Jeffrey Pyatt, the chief financial officer was briefed on the challenges facing the energy sector and the reforms introduced by the government.
He also thanked Washington for its offer of support regarding Islamabad’s transition to renewable energy.
The meeting comes at a time when the Minister of Finance is heading the Pakistani delegation to the meeting of the World Bank and the International Monetary Fund, which will be held in the American capital during the period from October 21 to 26.
Moreover, as part of his ongoing interactions in Washington, Aurangzeb also met ADB President Masatsugu Asakawa and praised the Bank’s partnership with Pakistan to support its development agenda and welcomed the launch of the ADB’s new office in Islamabad.
He expressed his hope that the Asian Development Bank’s country partnership framework would be finalized soon.
Commending ADB for the successful completion of the capital adequacy framework and exemption provided to Pakistan from additional charges beyond exposure limits for the next three years.
The Finance Minister also praised the ADB’s support for a $500 million policy-based loan for the Climate and Disaster Resilience Programme, which will be considered by the ADB Board of Directors on October 29.
In addition, the two sides agreed on the need for domestic revenue mobilization, regional cooperation and early completion of the Asian Development Bank office in Islamabad.
Meanwhile, during a meeting with representatives of S&P Global, Finance Minister Aurangzeb emphasized the update on macroeconomic stability, fiscal consolidation measures and external account developments which were reflected in improving key indicators across the board.
He informed the delegation that the cost of government financing is declining which will reduce the cost of debt servicing, and expressed hope that S&P Global would upgrade the country’s rating soon.
The Minister also held a meeting with the Secretary-General of the Digital Cooperation Organization, Dima Al-Yahya, where he emphasized the enormous potential in the ICT sector in the country.
The official further informed that Islamabad is investing in a comprehensive digital ecosystem to improve governance, quality of life of citizens and economic well-being and emphasized close cooperation in digital infrastructure, digital economy, digital FDI, digital skills and digital governance.
Separately, Aurangzeb thanked Dubai Islamic Bank Group CEO Adnan Chilwan for the bank’s timely support in bridging the financing gap and expressed appreciation for the bank’s efforts in expanding its operations in Pakistan.
He also informed him that the country’s credit rating had recently been upgraded by Fitch and Moody’s and indicated the intention to tap international capital markets (ICM) through the inaugural panda bonds to diversify the funding base.
Meanwhile, during his interaction with Export-Import Bank (EXIM) President Rita Jo Lewis, the minister urged closer cooperation between the two countries’ export-import banks and welcomed EXIM’s interest in the country’s energy, minerals and IT sectors.
The CFO also confirmed sharing data to enable the bank to evaluate its entry into the Islamabad market and sought clarification on US linkage requirements for goods and services financed or insured by the Export-Import Bank.
Whereas, during his participation in a panel discussion at the high-level event entitled “Growing Stronger: An Urgent Call to Improve Child Nutrition” organized by the World Bank, the Minister of Finance stressed the need for reforms in the area of taxation, reducing energy subsidies and improving governance. From state-owned enterprises to create more fiscal space for increased investments in climate change, population control, and child stunting.