ISLAMABAD: Pakistan is fully prepared for the upcoming review by the International Monetary Fund and is confident about its economic trajectory, Finance Minister Muhammad Aurangzeb said.
Speaking to Pakistan TV Digital, Aurangzeb confirmed that the IMF mission has begun its technical discussions in Karachi and that he will meet the team in Islamabad on Monday for the third review under Pakistan’s ongoing program.
“We are getting ready for the third review,” Aurangzeb said. “It will cover both performance benchmarks and structural benchmarks, as well as a forward-looking assessment of the program.”
He added that Pakistan is entering the review from a position of strength. “It is premature to say how it will go,” he said. “But I would say we are well-positioned for this review.”
Strong economic fundamentals
Aurangzeb highlighted the country’s consolidation of macroeconomic stability over the past two years. Consecutive primary fiscal surpluses, a stable currency, easing inflation, and rising foreign exchange reserves reflect these gains, he said.
Inflation has fallen into single digits, allowing the policy rate to drop to 10.5%, while reserves have grown from roughly two weeks of import cover in July 2023 to about 2.5 months.
“If the current trajectory continues, we expect to reach the international benchmark of three months of import cover by year-end,” he said.
Remittances rose to $38 billion last fiscal year and are projected to reach around $42 billion this year. IT exports are also strengthening, expected to reach $4 billion to $5 billion, alongside traditional export sectors.
From aid-led to investment-led growth
Aurangzeb emphasized that Pakistan is shifting from an aid-led model to a trade and investment-focused approach, targeting business-to-business engagement with international partners.
“We are very focused on sectors like oil and gas, minerals, mining and IT to attract further trade and investment,” he said.
He noted recent diplomatic and economic initiatives, including CPEC Phase 2.0 with China and strengthened ties with GCC countries and the United States. Tariff negotiations with the US have reduced Pakistan’s trade duties, further supporting competitive exports.
Reform and continuity
The finance minister outlined ongoing reforms to strengthen fiscal sustainability.
These include modernization of the Federal Board of Revenue, pension restructuring, government right-sizing, privatization of select state assets and enhanced debt management, which saved about Rs850 billion last year.
“We are focused on continuity, credibility, and reform,” Aurangzeb said. “Our engagement with the IMF is part of a broader strategy to ensure lasting stability, sustainable growth, and increased private-sector investment for Pakistan.”
The IMF mission will also examine governance reforms, electricity tariff adjustments, and the FY2026-27 federal budget framework. Completion of the review is expected to unlock $1.2 billion in funding, reinforcing Pakistan’s recovery and reform momentum.
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