Pakistan has lost its credibility; reforms required: Pakistan Finance Minister #IndiaFinance

Pakistan’s Finance Minister Muhammad Aurangzeb said on Thursday that the nation had lost its credibility and the country is struggling to achieve economic stability. “Urgent economic reforms were necessary to restore trust”, he further added.

He revealed that the Asian Development Bank had committed USD 500 million to us, while we expect to secure USD 1 billion from the International Monetary Fund (IMF) next week.

He was speaking at a Senate climate change committee meeting, where he discussed the country’s climate financing challenges and its negotiations with international lenders, The Express Tribune newspaper reported.

The Pakistan government is also in the process of issuing “green panda bonds” to attract further investment. The green panda bonds are issued in Chinese yuan by a foreign entity and the proceeds from these are used for green projects or assets.

Aurangzeb announced a major shift in tax policy, stating that the Finance Ministry will now oversee tax policy, while the Federal Board of Revenue will focus solely on tax collection. The minister also stressed the need for structural reforms to achieve sustainable and inclusive economic growth, according to the paper.

His remarks came as the country is still struggling to rebuild its economy after it narrowly escaped default in 2023 due to the timely intervention of the IMF.