Pakistan, IMF Discuss Budget Preparations and Long-Term Economic Reform Agenda

ISLAMABAD: Federal Finance Minister Muhammad Aurangzeb on Wednesday held detailed discussions with a visiting delegation of the International Monetary Fund regarding preparations for Pakistan’s upcoming federal budget and the government’s broader economic reform programme aimed at ensuring long-term stability and sustainable growth.

According to the Finance Ministry, the meeting focused on Pakistan’s macroeconomic stabilisation efforts, fiscal strategy, structural reforms, and measures designed to strengthen fiscal and external sustainability while promoting investment, productivity, and export-led growth.

The ministry stated that Finance Minister Muhammad Aurangzeb briefed the IMF delegation on the country’s macroeconomic outlook and the government’s continued commitment to maintaining economic stability through prudent fiscal management and comprehensive reforms.

Welcoming the IMF delegation to Islamabad, Aurangzeb appreciated the Fund’s constructive engagement and ongoing dialogue with Pakistan. He particularly acknowledged the productive discussions held during the Spring Meetings in Washington earlier this year, which helped advance cooperation between both sides.

During the discussions, the finance minister highlighted encouraging developments in Pakistan’s external sector, especially positive trends in workers’ remittances and export performance.

He noted that recent economic data reflected improvements in exports on both month-on-month and year-on-year bases, indicating growing resilience in the economy and gradual strengthening of macroeconomic fundamentals.

Aurangzeb stressed that despite encouraging signs of economic stabilisation, the government remained fully aware of major structural challenges, including external liabilities and the urgent need to accelerate sustainable export-led growth.

He reiterated the government’s commitment to deepening reforms aimed at strengthening macroeconomic stability without compromising long-term economic growth prospects.

The finance minister emphasized that Pakistan must move away from recurring boom-and-bust economic cycles through structural reforms, productivity enhancement, deregulation, industrial competitiveness, and export expansion.

According to the ministry, Aurangzeb informed the IMF delegation that the government’s reform agenda had been carefully developed in consultation with international experts and economists, adding that the ongoing policy measures formed part of a broader, technically grounded economic transformation strategy approved at the highest level.

The minister also briefed the IMF team on Pakistan’s continued engagement with international development partners, including economic cooperation initiatives with China and efforts to mobilise long-term investment aligned with national economic priorities.

The visiting IMF mission, led by Iva Petrova, acknowledged Pakistan’s positive progress in maintaining macroeconomic stability despite challenging global and regional economic conditions.

The IMF delegation appreciated the government’s continued commitment to prudent economic management and reform implementation while stressing the importance of sustaining fiscal discipline and advancing structural reforms to ensure durable and inclusive economic growth.

Both sides also exchanged views on maintaining reform momentum, strengthening macroeconomic resilience, and creating a balanced policy framework capable of supporting long-term economic development.

The IMF mission reaffirmed its commitment to continued engagement and constructive cooperation with the Government of Pakistan in support of the country’s economic reform programme and long-term economic resilience.