Pakistan reaffirms IMF path, fiscal discipline in UK meeting

April 18, 2026 (MLN) Pakistan’s Federal Minister for Finance and Revenue, Muhammad Aurangzeb, met with Jenny Chapman, the United Kingdom’s Minister for International Development and Africa, on the sidelines of the World Bank–IMF Spring Meetings, where both sides discussed macroeconomic stability, reform progress, and avenues for development cooperation.

During the meeting, the finance minister reaffirmed the strong and longstanding partnership between Pakistan and the United Kingdom, while sharing key updates on the country’s improving macroeconomic indicators.

He noted that Pakistan has recorded a current account surplus during the first nine months of the ongoing fiscal year, underscoring the government’s commitment to achieving its fiscal targets by June.

Muhammad Aurangzeb also highlighted Pakistan’s return to international capital markets after a gap of four years through a recent bond issuance, signaling renewed investor confidence.

He acknowledged the continued financial support extended by Saudi Arabia, which has helped strengthen external sector stability.

Addressing the impact of global energy price volatility, the minister outlined a series of policy measures undertaken by the government, including fiscal consolidation through reduced expenditures, implementation of austerity measures, full pass-through of energy costs, and the introduction of targeted subsidies supported by digital cash transfer mechanisms.

On the multilateral front, Aurangzeb confirmed that Pakistan has reached a Staff-Level Agreement with the International Monetary Fund, with formal approval from its Executive Board expected in the near term.

He reiterated that structural reforms remain central to the government’s economic agenda, particularly in broadening the tax base, reducing inefficiencies in the energy sector, and lowering the cost of financing.

Highlighting progress on climate resilience, the minister stated that Pakistan was able to independently finance relief efforts during its most recent flood crisis, reflecting improved fiscal buffers.

He also shared that the country has established a forward-looking National Disaster Management Centre, leveraging artificial intelligence and satellite-based monitoring systems to enhance preparedness.

Aurangzeb further emphasized that rapid population growth remains a key long-term challenge, adding that it has been identified as a priority area under the World Bank’s Country Partnership Framework for Pakistan.

The meeting concluded with an acknowledgment of the United Kingdom’s continued development support, particularly through the Foreign, Commonwealth & Development Office, in advancing Pakistan’s economic and social development objectives.

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