Federal Finance Minister Senator Muhammad Aurangzeb recently held a virtual meeting with the International Monetary Fund (IMF) to discuss Pakistan’s ongoing economic reforms and preparations for the fiscal year 2025–26 budget. This high-level discussion reaffirmed Pakistan’s dedication to continuing reforms as outlined under the $7 billion Extended Fund Facility (EFF) programme with the IMF.
During the virtual consultation, Aurangzeb emphasized Pakistan’s commitment to implementing IMF-recommended measures aimed at stabilizing the economy and ensuring sustainable growth. The session also included key members of the economic team, including Finance Secretary Imdad Ullah Bosal, who provided detailed updates on Pakistan’s fiscal consolidation efforts and reform agenda.
The dialogue served as an important platform for Pakistan to brief the IMF on current economic challenges and progress, particularly around fiscal discipline, revenue generation, and structural reforms. Aurangzeb also welcomed Iva Petrova, the newly appointed IMF Mission Chief for Pakistan, and expressed gratitude to the outgoing Mission Chief Nathan Porter for his support during a critical period of cooperation between Pakistan and the IMF.
Key topics discussed during the meeting included achieving a primary fiscal surplus, enhancing provincial tax revenue collection, and reforming state-owned enterprises (SOEs). The government is actively pursuing measures to privatize select SOEs and optimize public sector institutions, aiming to reduce fiscal burdens and improve efficiency.
These virtual consultations represent a continuation of ongoing dialogue between Pakistan and the IMF as both parties work closely to align economic policies with reform commitments. The IMF team reaffirmed their support for Pakistan’s reform trajectory, emphasizing the importance of fiscal consolidation and structural changes in securing macroeconomic stability.
Pakistan’s FY26 budget preparations are closely tied to these reforms, with both sides working toward agreement on budgetary proposals that meet IMF guidelines while addressing domestic economic priorities. The collaboration seeks to balance fiscal discipline with growth-oriented policies that can stimulate investment and job creation in a challenging global economic environment.
Aurangzeb’s engagement with the IMF reflects the government’s strategy to maintain transparency and accountability in managing public finances, while reinforcing investor confidence through consistent reform implementation. The virtual consultations also highlight the evolving relationship between Pakistan and international financial institutions in shaping the country’s economic future.
As Pakistan moves forward with the FY26 budget process, continued dialogue with the IMF will be critical in navigating economic uncertainties and ensuring the successful execution of agreed reforms. These efforts are expected to lay the groundwork for stronger fiscal health, increased revenue mobilization, and improved public sector efficiency in the years ahead.
In summary, the recent virtual meeting between Finance Minister Aurangzeb and the IMF underlines Pakistan’s ongoing commitment to economic reform and fiscal responsibility. It also marks a significant step in preparing the nation’s financial roadmap for the upcoming fiscal year, in close coordination with international partners.
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