ISLAMABAD:Finance Minister Muhammad Aurangzeb has stated that the country’s economic condition cannot be improved by relying on foreign loans.
Speaking at the inauguration ceremony of the SECP Head Office building in Islamabad, Aurangzeb emphasised the need for immediate reforms in the energy sector to ensure that the ongoing IMF programme is the last.
Aurangzeb highlighted the importance of implementing reforms while remaining within the IMF programme and adhering to privatisation policies.He stressed that Pakistan cannot enhance its economic situation by depending on external borrowing.
The finance minister also pointed out the need to reduce reliance on banks and foreign borrowing.
He called for increased transparency in economic affairs, where the SECP plays a vital role as the primary regulator.Aurangzeb further stated that Pakistan must advance through the use of technology, and simplifying the company registration process is a significant step forward.
“Our current economic situation forces us to seek loans for amounts as low as $1 billion,” Aurangzeb remarked, adding that Pakistan’s domestic market holds significant potential that needs to be harnessed.
Aurangzeb also mentioned that the government would support necessary legislative changes in regulations.
He expressed optimism, noting that Pakistan has started receiving positive economic news, such as an improved rating by Fitch.The State Bank of Pakistan has reduced the interest rate, and the new IMF loan programme has bolstered global confidence in Pakistan.
Aurangzeb reiterated the government’s intention to promote private sector activities and assured that the government would not involve itself in businesses typically run by the private sector.The prime minister desires the current IMF programme to be the final one for Pakistan.
Meanwhile, Pakistan has received five bids from Chinese firms to help it raise funds via Panda bonds, a Bloomberg report confirmed.Panda bonds are a type of debt security issued by foreign entities in the Chinese capital markets, and they are denominated in Chinese yuan (RMB). These bonds allow foreign issuers, including multinational corporations, international financial institutions, and sovereign governments, to access capital from Chinese investors.
“The government had gotten three offers from law firms and two from credit rating agencies by the time its deadline for proposals expired,” the report said, adding that two local firms had also shown interest in working as “domestic legal counsels for issuing the bonds”.
