Pakistan’s economic reform momentum is set to receive another critical boost, as Finance Minister Muhammad Aurangzeb confirmed that the International Monetary Fund’s Executive Board is expected to approve the country’s next loan disbursement by early December 2025. The upcoming approval follows the staff-level agreement reached in mid-October in Washington under the ongoing 37-month Extended Fund Facility and the Resilience and Sustainability Facility frameworks.
Aurangzeb shared the update while addressing the 9th edition of The Future Summit, an event themed around redefining national direction and strategic planning. Speaking at the forum, he stated that Pakistan is poised to receive approximately $1.2 billion, comprising $1 billion under the Extended Fund Facility and an additional $200 million under the Resilience and Sustainability Facility. This funding, once approved, will represent the IMF’s third tranche to Pakistan and will support ongoing stabilization measures and reform initiatives.
The finance minister highlighted that the successful staff-level agreement underlines the country’s progress in implementing key structural reforms and securing macroeconomic stability. He credited Pakistan’s traditional international partners, including China, the United States, Gulf Cooperation Council states, and particularly Saudi Arabia, for supporting the reform journey and extending bilateral financial assistance during challenging periods. According to Aurangzeb, the focus for the country now shifts from stabilization to building long-term growth through investment and trade, led by the private sector.
Addressing investor sentiment, the minister referenced the recent Overseas Investors Chamber of Commerce and Industry survey, noting that confidence among senior executives from international firms operating in Pakistan has improved. According to him, 73 percent of CEOs now view Pakistan as a viable investment destination, up from 61 percent in the previous survey. Aurangzeb emphasized that growing confidence among existing investors is crucial, as their experience shapes future capital inflows and influences broader foreign direct investment decisions.
Aurangzeb also pointed to priority sectors where Pakistan is focused on attracting fresh foreign investment, including minerals and mining, information technology, agriculture, and pharmaceuticals. He remarked that global interest in these segments is rising, presenting opportunities to diversify economic activity and broaden the country’s export base while strengthening domestic supply chains.
In discussing governance improvements, the finance minister underlined Pakistan’s ongoing digital reforms in tax collection and enforcement. He announced that artificial intelligence-powered monitoring has already been deployed in the banking and sugar sectors to address corruption, invoice manipulation, and tax leakages, with plans to extend similar systems to the tobacco and beverages industries. This approach, he added, is helping strengthen compliance and transparency while increasing confidence in state oversight.
Aurangzeb also revealed that Pakistan has registered 900,000 new taxpayers during tax year 2025, signalling progress in documentation and expansion of the tax base. He reiterated that improving tax collection remains central to reducing reliance on external borrowing and building sustainable fiscal capacity.
As Pakistan looks ahead to the IMF board decision, the government’s focus remains on maintaining policy continuity, strengthening investor trust, and sustaining digital reforms to modernize the economy and secure long-term financial stability.
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