Pakistan and the International Monetary Fund (IMF) have agreed to continue discussions virtually in the coming days following the official launch of the third review of Pakistan’s Extended Fund Facility (EFF) programme.
According to a statement issued by the Ministry of Finance, Finance Minister Muhammad Aurangzeb, along with his economic team, met the IMF review mission in Islamabad. The IMF delegation was led by Mission Chief Eva Petrova.
The statement said both sides agreed to hold further virtual talks to advance discussions under the programme. The government reiterated its commitment to maintaining macroeconomic stability and continuing structural reforms.
During the meeting, the finance minister said macroeconomic stability had been achieved through difficult but necessary reforms. He noted that reforms in the tax and energy sectors remain the centerpiece of the government’s economic agenda, with comprehensive changes in the tax system currently underway.
Aurangzeb informed the IMF mission that steps have been taken to make the Tax Policy Office fully functional and reaffirmed the government’s determination to proceed with privatisation and reforms of state-owned enterprises. He added that investor confidence has increased as a result of improved economic management.
Officials briefed the IMF delegation that right-sizing measures are being implemented to reduce federal government expenditure, while emphasizing a shift toward an export-oriented economic strategy. The meeting also highlighted that enhanced financial capacity had enabled the country to better cope with the impact of floods.
Participants noted that key economic indicators are gradually improving, but cautioned about risks stemming from volatility in global energy markets. The government also reaffirmed its commitment to increasing spending on social protection programmes.
The meeting was attended by the Governor of the State Bank of Pakistan and senior officials of the Federal Board of Revenue (FBR), among others.