Pakistan says IMF program on track as finance minister meets deputy chief

Pakistan’s Finance Minister Muhammad Aurangzeb said key economic indicators remain “broadly on track” as he met the deputy managing director of International Monetary Fund, Nigel Clarke, on the sidelines of the World Bank-IMF Spring Meetings 2026 on Thursday.

Aurangzeb briefed Clarke on Pakistan’s external financing position, implementation of the IMF-supported program and the broader economic outlook, according to an official statement.

He said the current account had performed better than expected, supported by strong remittance inflows during Ramadan. He added that foreign exchange reserves were being reinforced through financial support from Saudi Arabia, including deposit rollover arrangements.

The minister outlined plans to diversify financing sources, including accessing international capital markets through an inaugural Panda bond, Eurobond issuances and local-currency financing to reduce foreign exchange risks.

Aurangzeb welcomed Clarke’s positive assessment of Pakistan’s program implementation and financing strategy, particularly efforts to develop multiple funding avenues to improve resilience.

Both sides agreed that regional and geopolitical shocks could persist longer than expected, stressing the need to maintain exchange-rate flexibility and preserve fiscal space rather than rely on unsustainable public borrowing for growth.

Aurangzeb also welcomed an upcoming visit by an IMF mission to Pakistan next month to review the budget and other program-related matters.

In a separate statement, the minister said Pakistan is the largest core borrower from the International Fund for Agricultural Development, with the most extensive country program in its portfolio.

He said agriculture remains a national priority but acknowledged that Pakistan continues to underperform in yields, productivity and value chain development.

Highlighting reforms under the prime minister’s agenda, Aurangzeb pointed to new leadership initiatives, international training for young graduates in modern farming practices and deregulation of key commodity sectors.

He said full deregulation of the sugar sector has been approved, while the wheat sector is also being liberalized, with the federal government stepping back from procurement.

The minister emphasized improving financial access for smallholder farmers and addressing gaps in the agricultural value chain, including post-harvest losses and the need for storage infrastructure.

He also warned of risks to fertilizer supply due to the ongoing global crisis, noting potential impacts on agricultural productivity.

Aurangzeb praised IFAD’s evolving business model, particularly its shift toward greater private-sector engagement, and called for a more structured and scaled-up partnership.

Both sides discussed bringing in co-financiers such as the Asian Development Bank and the World Bank to expand the impact of IFAD’s programs.

The minister also proposed closer coordination between IFAD and the prime minister’s agricultural task force to better align development efforts with national priorities.