Pakistan confirms IMF deal, awaits board approval

April 15, 2026 (MLN): Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a high-level meeting with Dan Katz, First Deputy Managing Director of the International Monetary Fund, on the sidelines of the World Bank–IMF Spring Meetings 2026, focusing on programme continuity and the economic impact of ongoing external shocks.

During the meeting, the finance minister expressed appreciation for the IMF mission team’s efficient handling of Pakistan’s third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).

He confirmed that a staff-level agreement has been successfully reached, with formal approval from the IMF Executive Board now awaited.

Muhammad Aurangzeb briefed IMF leadership on the immediate economic implications of the ongoing geopolitical tensions, particularly highlighting pressures on energy procurement and supply chain logistics.

He outlined the government’s policy response, including demand management initiatives and fiscally neutral, targeted subsidies aimed at shielding vulnerable segments of society from inflationary pressures.

The discussion also covered Pakistan’s ongoing evaluation of second- and third-order effects stemming from the crisis. These include potential impacts on key macroeconomic indicators such as inflation, economic growth, exports, and remittance inflows.

Welcoming the IMF mission’s expected visit next month, the finance minister noted that detailed budget discussions will take place, including taxation reforms and fiscal consolidation measures.

He reaffirmed Pakistan’s firm commitment to the IMF-supported programme, emphasizing its role as a critical anchor for macroeconomic stability and investor confidence amid evolving external challenges.

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