No mini-budget coming, says finance minister

ISLAMABAD: Finance Minister Muhammad Aurangzeb said on Saturday no mini budget was coming and the tax collection target of Rs12,970 billion would be met.

Talking to Geo News, he said Pakistan had successfully met the primary surplus target, the national fiscal package had been approved by the cabinet and now there was no need to revise the NFC.

“Discussions with the IMF were constructive and productive. Virtual negotiations with the IMF, however, are ongoing as certain points required in-person discussions,” the finance minister explained. He said open and fact-based dialogue was held with the IMF team. The global lender’s delegation listened carefully to Pakistan’s position and appeared satisfied with the discussion, he added.

“The purpose of IMF’s visit was not to review the economy but to build confidence,” stressed Aurangzeb, who is a first-time finance minister, with a long working experience in the private banking sector.

Moreover, the finance minister termed the failed Pakistan International Airline’s privatisation move a “setback” for the government but stressed that the IMF listened to the government on this and privatisation of state-owned enterprises would continue.

“We will continue with it and not only PIA but all state-owned enterprises like Gencos, DISCOs and airports will be privatised gradually,” Aurangzeb clarified.

In relation to the power sector, he mentioned that work was being done on the transmission and distribution side and Federal Minister Awais Leghari was doing a good job.

The finance minister further said that the National Fiscal Pact approval was delayed by eight to ten days, which he explained to the IMF delegation and they appreciated it.

The provinces supported the National Fiscal Pact and Minister Aurangzeb personally thanked Sindh’s Chief Minister Murad Ali Shah for being forthcoming on this matter.

“When it comes to national interest, the KP government has always stood with the federal government,” he highlighted. “We are continuing the rightsizing of the government and it has been completed in 11 ministries. The exercise is underway for the rightsizing of other five ministries.

“To say that nothing has been done to reform the pension scheme is not fair because civil bureaucracy will be contributing to the pension scheme,” he asserted.

Meanwhile, in a statement issued earlier on Saturday, the global lender said Pakistan and the IMF agreed that prudent fiscal and monetary policies and revenue mobilisation from untapped tax bases must continue while transferring greater social and development responsibilities to the provinces. “We had constructive discussions with the authorities on their economic policy and reform efforts to reduce vulnerabilities and lay the basis for stronger and sustainable growth. We agreed with the need to continue prudent fiscal and monetary policies, revenue mobilisation from untapped tax bases, while transferring greater social and development responsibilities to provinces,” IMF Mission Chief Nathan Porter said in a statement, soon after the conclusion of the visit from Nov 12 to 15.

“Structural energy reforms and constructive efforts are critical to restore the sector’s viability and Pakistan should take steps to decrease state intervention in the economy and enhance competition, which will help foster the development of a dynamic private sector,” the statement said, adding “Strong programme implementation can create a more prosperous and more inclusive Pakistan, improving living standards for all Pakistanis”. The mission chief’s statement further said: “We are encouraged by the authorities’ reaffirmed commitment to the economic reforms, supported by the 2024 Extended Fund Facility (EFF). The next mission, associated with the first EFF review, is expected in the first quarter of 2025.” Staff visits are a standard practice for countries with semi-annual programme reviews and aim to engage with the authorities and other stakeholders on the country’s economic developments and policies and the status of planned reforms.