Pakistan, IMF discuss macroeconomic outlook, reforms and budget priorities

Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb on Tuesday briefed a visiting International Monetary Fund (IMF) mission on Pakistan’s macroeconomic outlook, fiscal strategy, reform priorities and ongoing efforts to ensure sustainable economic stability and long-term growth.

The discussions focused on Pakistan’s macroeconomic stabilization efforts, preparations for the upcoming federal budget and the broader reform agenda aimed at strengthening fiscal and external sustainability while promoting sustainable economic growth. Both sides exchanged views on maintaining reform momentum, preserving macroeconomic stability and advancing structural reforms to promote investment, productivity and export-led growth within a balanced and forward-looking policy framework.

Welcoming the IMF delegation to Islamabad, the finance minister appreciated the fund’s continued engagement and constructive dialogue with the government of Pakistan. He particularly acknowledged the productive discussions held during the Spring Meetings in Washington earlier this year.

Aurangzeb shared encouraging developments in Pakistan’s external sector, highlighting positive trends in remittances and export performance. He noted that recent data showed improvement in exports on both a month-on-month and year-on-year basis, reflecting growing resilience in the economy and a gradual strengthening of macroeconomic fundamentals.

The finance minister said that while stabilization efforts had produced encouraging results, the government remained mindful of structural challenges, particularly external liabilities and the 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 growth prospects. He emphasized the need to move Pakistan away from recurring boom-and-bust cycles through structural reforms, productivity enhancement, deregulation and improved export competitiveness.

Aurangzeb said the government’s reform agenda had been carefully calibrated in consultation with international experts and economists. He added that ongoing policy measures were not driven by short-term considerations but formed part of a broader, technically grounded economic transformation strategy endorsed at the highest level.

The finance minister also briefed the mission on Pakistan’s continued engagement with international development partners, including ongoing economic cooperation initiatives with China and efforts to mobilize long-term investment aligned with the country’s strategic economic priorities.

The IMF mission, led by Mission Chief Iva Petrova, acknowledged Pakistan’s progress in maintaining macroeconomic stability despite a challenging global and regional environment. The mission appreciated the government’s commitment to prudent economic management and reform implementation.

The IMF team emphasized the importance of sustaining reform momentum, maintaining fiscal discipline and advancing structural reforms to support durable and inclusive economic growth. Discussions also focused on the broader macroeconomic framework, the government’s reform agenda and priorities for the upcoming budget.

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

The meeting was attended by State Bank of Pakistan Governor Jameel Ahmad, Finance Secretary Imdad Ullah Bosal, Federal Board of Revenue Chairman Rashid Mahmood Langrial, and senior officials of the Finance and Revenue Division as well as the Tax Policy Office.