Islamabad, March 3, 2026 : Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, today met the International Monetary Fund (IMF) mission, led by Ms. Iva Petrova, at the kick-off meeting for the third review of Pakistan’s Extended Fund Facility (EFF) arrangement and the second review of the Resilience and Sustainability Facility (RSF).
In his remarks, the Finance Minister underscored that since the successful completion of the previous review, Pakistan has continued to consolidate the hard-earned gains in macroeconomic stability achieved under the EFF supported program and RSF program. He emphasized the Government’s firm resolve to maintain fiscal discipline and safeguard macroeconomic stability, terming these achievements as the result of sustained and difficult reforms.
The Minister highlighted that structural reforms, particularly in taxation and the energy sector, remain central to the Government’s reform agenda. He noted that comprehensive transformation efforts in tax administration, encompassing improvements in people, processes and technology, are underway with strong leadership at the highest level. He further shared that steps have been taken to fully operationalize the Tax Policy Office to ensure that future taxation policy is guided by economic principles aimed at supporting sustainable growth.
On the privatization and state-owned enterprise reform agenda, the Minister reaffirmed the Government’s commitment to advancing key transactions and restructuring initiatives during the year. He observed that recent developments have demonstrated growing investor confidence and a renewed appetite among domestic investors, reflecting trust in the economy’s direction and reform trajectory. He added that the privatization and restructuring process would continue in a transparent and orderly manner.
The Minister also outlined progress on right-sizing the federal government, including the merger of ministries and closure of certain entities, as part of broader public sector reforms aimed at improving efficiency and governance. He reiterated the Government’s commitment to an export-led growth strategy, supported by trade facilitation measures and tariff rationalization to enhance competitiveness and reduce import dependency over time.
The Finance Minister further apprised the mission of the Government’s response to flood-related challenges during the fiscal year, noting that the availability of fiscal buffers enabled timely rescue and relief efforts. He observed that maintaining macroeconomic stability has strengthened the country’s resilience to external and climate-related shocks.
On economic performance, the Minister shared that recent indicators point toward gradual recovery, with positive trends in growth and key sectors. However, he acknowledged emerging global headwinds, including evolving geopolitical developments and volatility in international energy markets, which pose potential risks. He informed the IMF mission that a high-level committee has been constituted to closely monitor the evolving situation and ensure coordinated policy responses.
The Minister also emphasized that while stabilization efforts were necessary to restore macroeconomic balance, the Government remains mindful of the social impact and would continue to pursue policies aimed at enhancing social spending to protect the vulnerable population.
Ms. Iva Petrova thanked the Minister for the comprehensive briefing and shared insights, including from the mission’s discussions with authorities in Karachi on the ongoing reviews under the EFF and RSF. Both sides agreed to continue further discussions virtually in the coming days.
The meeting was attended by Governor State Bank of Pakistan Mr. Jameel Ahmad, Secretary Finance, Chairman Federal Board of Revenue (FBR), and senior officials of the Finance Division.
