Finance Minister Senator Muhammad Aurangzeb expressed a positive outlook on the anticipated visit of an International Monetary Fund (IMF) mission scheduled for next month, aimed at engaging in budget discussions, including critical talks on taxation policies.
The minister held a meeting with Dan Katz, First Deputy Managing Director of the IMF, during the World Bank–IMF Spring Meetings 2026. Their discussions centered on ensuring the continuity of the IMF programme and addressing the repercussions of external economic shocks on Pakistan.
Senator Aurangzeb acknowledged the IMF team’s efficient management of the third review under the Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF). He highlighted that a staff-level agreement had been reached successfully, with the IMF Executive Board’s approval currently pending.
During the meeting, the finance minister detailed the immediate effects of the ongoing conflict on Pakistan’s economy, particularly concerning energy procurement and logistical challenges. He outlined the government’s strategic response, which includes demand management initiatives and fiscally-neutral targeted subsidies aimed at safeguarding the most vulnerable populations.
Furthermore, Senator Aurangzeb updated the IMF leadership on Pakistan’s continuous evaluation of the crisis’s secondary and tertiary impacts, including potential consequences for inflation, economic growth, exports, and remittance flows.
In a significant development, the minister welcomed the IMF mission’s forthcoming visit for comprehensive budget discussions, emphasizing the importance of taxation deliberations. He reiterated Pakistan’s steadfast commitment to the programme’s core objectives, highlighting its crucial role in maintaining economic stability and fostering market confidence amid ongoing external pressures.
