Pakistan warns IMF of energy, inflation risks amid ongoing ME conflict
- Approval by the IMF Executive Board was awaited, says Aurangzeb
Pakistan has warned the International Monetary Fund (IMF) of the economic fallout from the ongoing conflict, highlighting risks to energy procurement, inflation, and overall growth, as Finance Minister Muhammad Aurangzeb held talks with a senior IMF official in Washington.
Aurangzeb held a meeting with Dan Katz, First Deputy Managing Director of the IMF, on the sidelines of the World Bank–IMF Spring Meetings 2026, read an official statement on Wednesday.
The finance minister expressed gratitude for the IMF mission team’s seamless handling of the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF). He informed that a staff-level agreement had been successfully concluded and that approval by the IMF Executive Board was awaited.
Aurangzeb briefed the IMF official on the immediate impact of the ongoing conflict on Pakistan’s economy, particularly in relation to energy procurement and logistics. He outlined the Government’s policy response, including demand management measures and fiscally-neutral targeted subsidies designed to protect the most vulnerable segments of the population.
Aurangzeb departs for World Bank Group-IMF Spring Meetings 2026
He further apprised the IMF leadership of Pakistan’s ongoing assessment of the second and third-order effects of the crisis, including implications for inflation, growth, exports, and remittances.
The finance minister welcomed the IMF mission’s expected visit next month for budget discussions, including deliberations on taxation matters. He reaffirmed Pakistan’s unwavering commitment to the programme anchor, underscoring its role as a credible source of stability and market confidence amid the prevailing external shock.
Earlier, Aurangzeb met with the Director of the Middle East and Central Asia Department at the International Monetary Fund (IMF), Jihad Azour, on the sidelines of the World Bank–IMF Spring Meetings 2026.
Aurangzeb briefed Azour on the economic impact of the ongoing conflict in the Middle East, describing it as one of the most significant supply shocks in recent times.
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