Islamabad, Nov 9: Finance Minister Reveals No Lenders Willing to Rollover Debt for Pakistan’s Relief. Finance Minister Muhammad Aurangzeb stated on Friday that investors are hesitant to assist Pakistan by either depositing funds or refinancing debt.
Speaking at a literature festival in Islamabad, he called on the private sector to take the lead in driving economic progress and to eradicate corrupt practices such as speed money.Aurangzeb recognized that lenders are currently unwilling to provide new deposits or extend debt rollovers, which has compelled Pakistan to seek investment from partners such as China, Saudi Arabia, and the UAE.
The finance minister underscored the necessity for the private sector to spearhead economic initiatives, particularly in the business-to-business segment of the China-Pakistan Economic Corridor (CPEC).
Aurangzeb outlined the government’s attempts to stabilize the economy through efforts to maintain currency and foreign reserve stability, reduce inflation, and handle a recent $1 billion debt repayment. He anticipated that by the March-June quarter, foreign reserves would be adequate to cover imports for three months.
Additionally, he noted improvements in energy costs, while stressing the need for more profound reforms, including privatizing state-owned enterprises (SOEs) and implementing essential tax and structural reforms given Pakistan’s untenable 10 percent tax-to-GDP ratio.
The senator expressed concern about pricing disparities, observing that while global chicken prices had decreased by 14 percent, domestic prices had increased by 15 percent. He also advocated for a comprehensive digitalization of government processes to curb revenue losses.
Aurangzeb further raised concerns regarding Pakistan’s swift population growth, warning that if the population climbs to between 400 and 450 million, the country’s resources would be severely strained.
