Finance Minister Muhammad Aurangzeb announced on Wednesday that Pakistan is likely to receive the third $1 billion tranche from the International Monetary Fund (IMF) following a review scheduled for the end of September. Speaking informally to Samaa TV, Aurangzeb confirmed that all preparations for the economic review are complete. So far, Pakistan has received $2.1 billion under the $7 billion, 37-month Extended Fund Facility.
He added that Pakistan’s economic progress is being acknowledged globally, with two international rating agencies upgrading the country’s credit standing and a third likely to follow. The government also plans to issue Panda bonds by the end of the year, with the policy rate lowered to 11% and CEO confidence up by 84%.
PIA Routes Reopen as Privatization Push Gains Momentum
Aurangzeb highlighted that PIA’s routes to Europe and the UK have reopened, drawing interest from major international bidders in its privatization process. While the airline has improved, he acknowledged that restructuring loss-making state-owned enterprises (SOEs) — which account for Rs6 trillion in losses — will take time. A total of 24 SOEs have been listed for privatization, with governance reforms already underway.
He further noted reforms in civil service pensions, rightsizing across 43 ministries and 400 departments, and Rs1 trillion saved in debt servicing last year. Electricity tariff reductions have been agreed upon, with a task force working on energy cost cuts.
Aurangzeb emphasized consultative decision-making, saying the prime minister has mandated private sector engagement on key policy issues. Talks with traders have been productive, and while full consensus isn’t always possible, business chambers’ input is essential going forward.
