Finance Minister Muhammad Aurangzeb has announced new restrictions preventing non-filers from purchasing property and vehicles, stressing that challenging economic decisions are essential for Pakistan’s progress, Express News reported.
Speaking at a press conference in Washington, Aurangzeb emphasized the need for legal provisions concerning non-filers as Pakistan prepares to phase out the non-filer status entirely. He outlined ongoing measures to boost Pakistan’s tax-to-GDP ratio from 9% to 13%, attributing improvements in inflation and policy rates to these efforts.
The finance minister noted Pakistan’s steady advancement toward economic stability, with major rating agencies acknowledging the positive economic trajectory.
Aurangzeb highlighted that discussions with the IMF have been productive and expressed hope that this would be Pakistan’s last IMF program. He also noted that the World Bank plans to provide grants rather than loans.
In the U.S., Aurangzeb met with IMF and World Bank officials and held discussions with finance ministers from Saudi Arabia and other countries. He reported growing interest from the American business sector in investing in Pakistan.
On Saturday, Pakistan announced it has requested an additional loan of 10 billion yuan (approximately $1.4 billion) from China, underscoring ongoing external financial needs.
Finance Minister Aurangzeb met with China’s Vice Minister of Finance, Liao Min, and “requested the Chinese side to increase the limits under the Currency Swap Agreement to CNY 40 billion,” according to a statement from the Ministry of Finance. Pakistan has already utilized the existing CNY 30 billion ($4.3 billion) facility for debt repayments and now seeks to increase this limit by an additional CNY 10 billion, equal to $1.4 billion at the current exchange rate.
The request was made during the annual meetings of the International Monetary Fund (IMF) and the World Bank.
If approved, the total facility would increase to approximately $5.7 billion.
This is not Pakistan’s first attempt to raise the debt limit, although previous requests have been declined by Beijing. This latest request comes shortly after China extended the $4.3 billion (CNY 30 billion) facility for three more years. During Chinese Prime Minister Li Qiang’s recent visit, Pakistan and China signed a currency swap agreement, extending Pakistan’s debt repayment deadline to 2027.
Pakistan has already utilized the existing $4.3 billion, or 30 billion yuan, under the China-Pakistan currency swap agreement. The Ministry of Finance did not specify the rationale for seeking an additional $1.4 billion, especially given that both the IMF and Pakistan previously affirmed the financing gap for the $7 billion program had been met.
