IMF MENAP meeting: Policy response to global shocks highlighted

WASHINGTON: 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 Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region, on the sidelines of the World Bank–IMF Spring Meetings 2026.

In his intervention, the Minister characterized the ongoing crisis in the Middle East as one of the most significant supply shocks in recent history. He outlined the immediate measures undertaken by the Government of Pakistan to address its first-order effects, including adjustments in procurement strategies, pricing frameworks, and logistics chains.

Senator Aurangzeb underscored the Government’s commitment to transitioning away from broad-based subsidies towards well-targeted support mechanisms aimed at protecting the most vulnerable segments of the population. He noted that the Government, in close coordination with the State Bank of Pakistan, is conducting a comprehensive assessment of the second and third-order effects of the crisis across key macroeconomic indicators, including inflation, economic growth, exports, remittances, and the current account.

The Finance Minister highlighted that Pakistan has entered the current period of global uncertainty with strengthened policy buffers and has drawn important lessons from past external shocks, including the devastating floods in recent years.

Copyright Business Recorder, 2026