Pakistan, UK move to deepen economic reform partnership

December 10, 2025 (MLN): The United Kingdom has indicated readiness to expand technical and regulatory support for Pakistan’s economic reform agenda in Islamabad.

The focus areas include digitalisation, governance improvements, and strengthening the investment climate.

The support aligns with Pakistan’s ongoing IMF-linked stabilisation measures as the government advances its broader economic reform programme, according to the press release.

The commitment emerged during discussions between UK Minister for Development Baroness Chapman and Finance Minister Senator Muhammad Aurangzeb, following Pakistan’s recent completion of IMF programme reviews.

UK backing at the Fund was noted as one of the factors that facilitated the successful review outcome, which is central to Pakistan’s fiscal and external stability efforts.

Pakistan outlined progress on taxation reforms aimed at widening the tax base and reducing leakages through technology-led oversight.

Officials also referenced ongoing work to improve energy sector efficiency, manage debt risks, restructure pensions, and right size public sector operations reforms tied to medium term fiscal sustainability.

The two sides reviewed challenges within Pakistan’s devolved governance system, particularly the need for stronger coordination between federal and provincial governments to improve outcomes in health, education, population management, and climate resilience.

Islamabad stressed the importance of aligning development spending with national priorities and accelerating implementation of World Bank supported programmes.

Women’s economic participation, demographic pressures, and options for strengthening family planning and social protection frameworks were also discussed.

Both countries agreed to deepen cooperation across economic management, climate and population policy, and financial-sector reforms, with further engagement expected through expanding links with the private sector and continued policy dialogue.

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