Finance minister says IMF team to arrive in Pakistan in September for next review

Finance Minister Muhammad Aurangzeb has shared that a team of the International Monetary Fund (IMF) will arrive in Pakistan in September for the next review of the $7 billion loan program.

If the review is completed successfully, the IMF will then disburse the next tranche of $1 billion.

The minister also believes that as Pakistan's economy heads towards normalcy, there is ample room for the central bank to cut the benchmark interest rate further.

In a speech delivered during an Independence Day ceremony in Rawalpindi on Wednesday, he said an announcement regarding the interest rate would be made soon. The State Bank of Pakistan’s next Monetary Policy Committee meeting is scheduled for September 15.

During the speech, Aurangzeb congratulated the nation on both the success of the struggle for truth and the celebration of Pakistan’s 78th Independence Day.

“There is room to reduce the policy rate in line with the current inflation trend,” the minister said, signaling potential monetary easing amid improving macroeconomic indicators.

Aurangzeb stated that over the past 18 months, Pakistan’s key economic indicators have shown significant improvement. One of the most notable achievements, he added, was a PKR 1 trillion reduction in interest payments on debt in the last fiscal year, with another PKR 1 trillion cut expected during the current fiscal year.

Reflecting on recent economic progress, the minister said the economy has stabilized over the past 18 months, with the Pakistani rupee showing steady strength. “The role of the business community in stabilizing the national economy has been crucial,” Aurangzeb noted.

In a landmark move, he announced the launch of comprehensive tariff reforms—the first of their kind in the country’s 78-year history, according to him. “This is a golden opportunity for Pakistan,” he said, noting that a successful tariff deal had recently been concluded with the United States, which is expected to open new avenues for trade and investment.

Aurangzeb praised Federal Energy Minister Awais Leghari and his team for their efforts to reduce electricity rates. He also highlighted the record-breaking performance of the Pakistan Stock Exchange, which has reached its highest level in history.

Emphasizing the need for continued structural reforms, the finance minister called for closing tax loopholes and bringing greater efficiency to the system. “A change is necessary,” he said. “Wherever there are loopholes in taxation, they must be sealed.”

The address comes at a time when the government is under pressure to sustain recent economic gains, improve fiscal discipline, and attract foreign investment while managing inflation and energy prices.

He further highlighted growth in capital markets and entrepreneurship, noting that 52,000 new investors joined the Pakistan Stock Exchange, and over 250,000 companies were registered with the Securities and Exchange Commission of Pakistan (SECP) in the same period.

“These numbers reflect growing investor confidence and a more formalized business environment,” Aurangzeb said.

Referring to recent trade developments, the finance minister confirmed the successful conclusion of tariff negotiations with the United States, which he said should pave the way for increased exports to the U.S. market.

Aurangzeb acknowledged the rising burden on Pakistan’s salaried class and ruled out any further tax hikes on them. “We cannot increase taxes on salaried individuals any further,” he said, “but we must broaden the tax net to ensure fairness and fiscal sustainability.”

Closing his address, Aurangzeb paid tribute to the armed forces and the sacrifices of the nation’s martyrs. “This country is the result of the sacrifices of Pakistan’s armed forces, our millions of martyrs, unshakable resolve, and national unity,” he said.