Pakistan, IMF review reform progress

Finance Minister Muhammad Aurangzeb on Wednesday briefed senior International Monetary Fund (IMF) officials on Pakistan’s improving fiscal and external position, as the government pushes ahead with structural reforms.

According to a statement, Aurangzeb held a series of meetings with the senior management of the IMF, including Dan Katz, First Deputy Managing Director, Nigel Clarke, Deputy Managing Director, Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, and Iva Petrova, Mission Chief for Pakistan.

During the meetings, the finance minister reviewed Pakistan’s macroeconomic performance and progress under the Extended Fund Facility (EFF), Resilience and Sustainability Facility (RSF), and the broader IMF-supported reform programme.

Aurangzeb highlighted the country’s improved fiscal and external balances, achievement of revenue targets, stronger foreign exchange reserves, record remittances, and an improved current account position.

Discussions also covered tax and energy reforms, privatisation, tariff rationalisation, debt management, diversification of financing sources, and Pakistan’s return to international capital markets.

Both sides also exchanged views on human capital development, women’s economic participation, demographic challenges, technology-led growth, and private sector-led, export-oriented development.

The finance minister concluded the meetings by thanking the Fund for recognising Pakistan’s strong programme ownership and reform progress, while reaffirming the Government’s commitment to fiscal discipline, policy credibility, structural reforms, and long-term economic transformation.

Meeting with US EXIM Bank chief

In a separate meeting, with US EXIM Bank President and Chairman, John Jovanovic, in Washington, DC, the finance minister discussed expanding Pakistan–US economic and commercial cooperation, with a focus on financing for specific long-term projects and increased trade in agricultural commodities, including cotton and soybeans, as well as hydrocarbons.

Aurangzeb welcomed the US EXIM Bank’s proposal of developing a broader framework to consolidate priority projects, establish a multi-year transaction pipeline, and facilitate US financing, technology, equipment, and services.

Both sides agreed to identify near-term transactions, designate focal persons, and work towards finalising the strategic framework, with a view to having it signed on the sidelines of the United Nations General Assembly session in September 2026.