Pakistan, IMF review programme progress, outlook

April 17, 2026 (MLN): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a constructive meeting with Mr. Nigel Clarke, Deputy Managing Director of the International Monetary Fund (IMF), on the sidelines of the World Bank–IMF Spring Meetings 2026.

During the meeting, the Finance Minister briefed the IMF Deputy Managing Director on Pakistan’s external financing position, the ongoing implementation of the IMF-supported programme, and the broader macroeconomic outlook. He noted that key economic indicators remain broadly on track.

Senator Aurangzeb highlighted that the current account has performed better than earlier projections, supported by stronger-than-expected remittance inflows during the month of Ramadan.

He further informed that foreign exchange reserves are being strengthened through recently declared financial support from the Kingdom of Saudi Arabia, including deposit rollover arrangements.

The Finance Minister also outlined Pakistan’s strategy to broaden and diversify its financing base.

This includes planned access to international capital markets through instruments such as an inaugural Panda bond, Eurobond issuances, and increased local-currency financing aimed at reducing exposure to foreign exchange risk.

Senator Aurangzeb appreciated the IMF Deputy Managing Director’s positive assessment of Pakistan’s programme implementation and financing approach, particularly the emphasis on developing multiple funding avenues to improve economic resilience.

Both sides acknowledged that regional and geopolitical uncertainties may persist longer than anticipated, reinforcing the need to maintain exchange rate flexibility and preserve fiscal space, rather than relying on unsustainable public borrowing to drive growth.

The Finance Minister also welcomed the upcoming visit of the IMF mission team to Pakistan next month, which will review the federal budget and other programme-related developments.

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