We have lost our credibility, need urgent economic reforms: Pak FM

Finance Minister Muhammad Aurangzeb said on Thursday that Pakistan had lost its credibility as the country struggled to achieve economic stability.

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.

We have lost our credibility as a country, Aurangzeb stated, adding that urgent economic reforms were necessary to restore the trust.

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

The government is also working on issuing green panda bonds to attract further investment, he said.

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 also 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 was still struggling to rebuild its economy after it narrowly escaped default in 2023 due to timely intervention of the IMF.