Pakistan details policy steps amid global supply shocks at IMF forum

April 16, 2026 (MLN): Pakistan has outlined its policy response to ongoing global economic shocks during a high-level meeting of finance leaders held under the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) framework on the sidelines of the IMF–World Bank Spring Meetings 2026.

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, participated in a meeting convened by the Managing Director of the International Monetary Fund (IMF) with finance ministers, central bank governors, and heads of regional financial institutions from the MENAP region.

During his address, the Finance Minister described the ongoing crisis in the Middle East as one of the most significant supply-side shocks in recent history, with wide-ranging implications for global and regional economies.

He outlined Pakistan’s immediate policy response aimed at mitigating the first-order effects of the shock, including adjustments in procurement strategies, pricing mechanisms, and logistics and supply chain management.

Senator Aurangzeb reiterated the government’s resolve to gradually shift away from broad-based subsidies towards more targeted support systems designed to protect vulnerable and low-income segments of society.

He emphasized that this approach is aimed at improving fiscal efficiency while ensuring social protection remains intact.

He further noted that, in coordination with the State Bank of Pakistan, the government is actively assessing the secondary and tertiary impacts of the crisis on key macroeconomic indicators, including inflation, economic growth, export performance, remittance inflows, and the current account balance.

Highlighting Pakistan’s current macroeconomic position, the Finance Minister stated that the country is entering this period of global uncertainty with strengthened policy buffers.

He added that Pakistan has incorporated key lessons from past external shocks, including recent climate-induced disruptions such as devastating floods, into its policy planning framework.

Reaffirming the government’s commitment to structural reforms, Senator Aurangzeb stressed that any necessary policy adjustments would be implemented in a measured and responsible manner, without compromising recent gains in macroeconomic stability.

Concluding his remarks, he expressed appreciation for the continued engagement and support of the IMF leadership and international partners in helping Pakistan navigate an increasingly complex global economic environment.

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