Pakistan Secures IMF Staff Agreement for Second Loan Review
Pakistan has successfully reached a staff-level agreement with the International Monetary Fund (IMF) for its second loan review, paving the way for the release of the next tranche in early December, according to Finance Minister Muhammad Aurangzeb.
Speaking at the 9th Future Summit in Karachi, Aurangzeb emphasized that the government is now steering toward an investment-driven economic model powered by the private sector.
‘Our Direction Is Right,’ Says Finance Minister Aurangzeb
Aurangzeb highlighted growing investor confidence, confirming that Google plans to open its office in Pakistan, considering it as a potential export hub for the region.
He also announced the launch of a blockchain research center at the Lahore University of Management Sciences (LUMS), reflecting Pakistan’s commitment to emerging technologies and digital innovation.
Fiscal Reforms and Digital Tax Expansion
The finance minister revealed that fiscal reforms have made consistent progress over the last 18 months, with artificial intelligence (AI) now being used to expand the tax base.
“The sugar industry has been fully digitized, and the cigarette sector will be next,” he said.
Aurangzeb added that 900,000 new tax filers have been registered this year, signaling a stronger and more transparent taxation system.
He also mentioned that Egypt had shown interest in adopting Pakistan’s reform model, while the privatization of Pakistan International Airlines (PIA) is on track for completion by year-end.
Aurangzeb called recent UAE investment in a Pakistani bank the beginning of “a new economic era.”
Malik: Innovation and Fair Competition Key to Progress
Federal Minister for Climate Change and Environmental Coordination, Senator Musadik Malik, also addressed the summit, urging for equal opportunity, fair competition, and inclusive economic growth.
“The aspirations of our youth are simple — they want jobs, safe neighborhoods, and basic services,” Malik said.
He argued that macroeconomic numbers like GDP growth mean little to ordinary Pakistanis compared to their concerns about education, healthcare, pollution, and urban flooding.
Environmental and Social Challenges
Malik warned that environmental issues, including smog in Lahore and flooding in Karachi, are cutting life expectancy by nearly eight years.
He called for urgent reforms in healthcare, education, and local governance, stressing that “innovation requires competition” and that elite-dominated policymaking must end.
“If the elite controls society, how can real businesses grow?” he questioned, calling for fair energy access and pro-export policies.
Youth Empowerment and Technology at the Core of Growth
Both Aurangzeb and Malik agreed that Pakistan’s future economic resilience lies in youth empowerment, technological innovation, and effective use of external funding, particularly for climate resilience.
Khyber Pakhtunkhwa Invites Investment in Digital and Green Sectors
Khyber Pakhtunkhwa Governor Faisal Karim Kundi invited investors to explore the province’s focus on digital transformation, renewable energy, and tourism development.
“Public and private sectors must work together for progress,” he said, pointing to marble, honey, and carpet manufacturing as key growth industries.
Sindh Chief Minister Calls for Tech-Driven, Inclusive Growth
Sindh Chief Minister Murad Ali Shah echoed the call for inclusive, technology-led growth. Speaking at the same summit, he said Sindh is investing heavily in energy transition, urban infrastructure, and human capital development, but warned that federal delays linked to IMF conditions are holding up approvals for IT parks and tech zones.
He noted that Sindh contributes over 30% to Pakistan’s GDP, with Karachi accounting for nearly half of national exports.
Sindh Budget Prioritizes Development and Education
Shah said that Rs959 billion has been allocated for development projects in the current budget, while the next year’s proposed budget stands at Rs3.45 trillion, including a record Rs523.7 billion for education.
With 60% of Sindh’s population under 30, the province is prioritizing digital and vocational training to equip youth for self-employment.
“We cannot stop global change, but we can correct our course and build a sustainable, inclusive future,” he said.
