IMF review shows Pakistan’s economic resilience, says Aurangzeb as $1.2bn tranche approved

Finance Minister Muhammad Aurangzeb on Tuesday said that Pakistan’s successful completion of key reviews under the International Monetary Fund (IMF) programme reflects the country’s strengthened economic position and resilience, despite challenges posed by recent devastating floods.

In a statement released by the Finance Division, Aurangzeb acknowledged the cooperation of federal ministries, government bodies, county offices, senior secretaries, and provincial governments in advancing the government’s structural reform agenda and cooperation that contributed to the successful completion of the IMF’s second review under the Extended Fund Facility (EFF).

Opening today’s meeting of the Economic Coordination Committee (ECC), the minister noted that this collective commitment and disciplined implementation had been central to strengthening Pakistan’s economic management and stability.

He welcomed the IMF Executive Board’s announcement on Monday confirming completion of the second EFF review, which allows Pakistan to draw about $1 billion, and the first review under the Resilience and Sustainability Facility (RSF), enabling an additional $200 million.

He highlighted the IMF’s acknowledgement that Pakistan’s strong program implementation, despite the recent devastating floods, had maintained stability and improved financing and external conditions.

Referring to the latest assessment, Aurangzeb noted that the IMF had specifically recognised Pakistan’s resilience during the flood emergency, underscoring that the country did not need to make an immediate appeal for rescue and relief support.

He attributed this outcome to the fiscal and external buffers preserved by the government, which enabled Pakistan to absorb the shock and manage the crisis effectively.

The minister reiterated the Ministry of Finance’s gratitude for the support received across federal and provincial institutions, stressing that this coordinated effort will help consolidate progress toward economic stability.

He added that the IMF’s assessment again affirmed Pakistan’s ability to withstand the flood crisis without requiring urgent international assistance and described this acknowledgement as a significant milestone at a time when IMF disbursements totalling approximately $1.3 billion have been approved under the EFF and RSF arrangements.