ME conflict: Aurangzeb briefs IMF about impact on Pakistan’s economy

WASHINGTON: Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a meeting with Dan Katz, First Deputy Managing Director of the International Monetary Fund (IMF), on the sidelines of the World Bank–IMF Spring Meetings 2026.

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.

The Finance Minister briefed the First Deputy Managing Director 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.

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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 in the face of the prevailing external shock.

Copyright Business Recorder, 2026