Pakistan IMF engagement centers on fiscal discipline, growth strategy

May 13, 2026 (MLN): A development in Pakistan’s engagement with the International Monetary Fund (IMF) Mission saw Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, briefing the visiting delegation on the country’s macroeconomic outlook, fiscal strategy, and reform priorities.

He also outlined ongoing efforts aimed at ensuring sustainable economic stability and long-term growth.

The discussions covered Pakistan’s macroeconomic stabilization efforts, preparations for the upcoming federal budget, and the broader reform agenda aimed at strengthening fiscal and external sustainability while supporting sustainable economic growth.

Both sides exchanged views on maintaining reform momentum, preserving macroeconomic stability, and advancing structural reforms to promote investment, productivity, and export-led growth within a balanced and forward-looking policy framework.

The Finance Minister, while welcoming the IMF delegation to Islamabad, appreciated the Fund’s continued engagement and constructive dialogue with the Government of Pakistan, and acknowledged the productive discussions held during the Spring Meetings in Washington earlier this year.

He shared encouraging updates on the external sector, highlighting positive trends in remittances and export performance.

He noted that recent data reflected improvement in exports on both a month-on-month and year-on-year basis, indicating growing economic resilience and gradual strengthening of macroeconomic fundamentals.

The Finance Minister further emphasized that although stabilization efforts had delivered encouraging results, the Government remained fully aware of structural challenges, particularly external liabilities and the need to accelerate sustainable, export-led growth.

He reiterated commitment to deepening reforms to strengthen macroeconomic stability without compromising long-term growth prospects, and stressed the importance of moving away from recurring boom-and-bust cycles through structural reforms, productivity enhancement, deregulation, and improved export competitiveness.

He also stated that the reform agenda had been carefully calibrated in consultation with international experts and economists, and that the ongoing policy measures were not driven by short-term considerations but formed part of a broader, technically grounded economic transformation strategy endorsed at the highest level.

The Finance Minister briefed the Mission on continued engagement with international development partners, including ongoing economic cooperation initiatives with China and efforts to mobilize long-term investment aligned with the country’s strategic economic priorities.

The IMF Mission, led by Mission Chief Ms. Iva Petrova, acknowledged Pakistan’s progress in maintaining macroeconomic stability despite a challenging global and regional environment, and appreciated the Government’s commitment to prudent economic management and reform implementation.

The Mission underscored the importance of sustaining reform momentum, maintaining fiscal discipline, and advancing structural reforms to support durable and inclusive economic growth.

It also discussed the broader macroeconomic framework, reform agenda, and priorities for the upcoming budget, while reaffirming continued engagement and constructive cooperation with Pakistan in support of its economic reform programme and long-term resilience.

The meeting was attended by Governor State Bank of Pakistan Mr. Jameel Ahmad, Secretary Finance Division Mr. Imdad Ullah Bosal, Chairman Federal Board of Revenue Mr. Rashid Mahmood Langrial, and senior officials of the Finance and Revenue Division as well as the Tax Policy Office.

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