Mohsin Siddiqui (Chief Reporter)

Federal Minister for Finance and Revenue, Muhammad Aurangzeb, on Saturday hinted at revisiting the National Finance Commission (NFC) Award in Pakistan if the International Monetary Fund (IMF) approves a larger bailout program. Aurangzeb expressed optimism for an increased IMF bailout, aiming to enhance revenue distribution between provinces and the federal government.

In discussions with journalists and think tanks during his visit to the US capital for IMF and World Bank meetings, Aurangzeb emphasized Pakistan’s role in shaping the bailout program’s priorities. He stressed that the program should reflect Pakistan’s needs and priorities, supported by IMF assistance.

Addressing the possibility of revising the NFC Award, Aurangzeb highlighted the importance of aligning revenue allocation with the 18th amendment, which decentralized several sectors to provinces. He indicated a need for dialogue with provincial governments to incentivize tax base expansion, particularly in sectors like agriculture and real estate.

Pakistan, having signed a short-term agreement with the IMF in 2023, now seeks a new bailout of up to $8 billion. Aurangzeb’s visit coincides with the IMF’s updated World Economic Outlook, projecting Pakistan’s growth at 2 percent, with efforts to boost it above four percent through support for industries, agriculture, and IT.

Aurangzeb also dismissed significant rupee devaluation, citing Pakistan’s solid reserves, stable currency, and growing exports as factors supporting the currency. He pledged increased support for key sectors to drive national growth in the coming years.