The International Monetary Fund (IMF) mission has concluded its visit to Pakistan after detailed discussions with officials from the finance ministry. The talks focused on the country’s economic performance, fiscal planning for the coming years, and progress under IMF-supported reform programs.
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During the visit, Pakistan confirmed its commitment to achieving a primary surplus target of 2% of win the fiscal year 2027-28. The IMF team, led by advisor Iva Petrova, stayed in Islamabad from May 13 to May 20. The discussions also reviewed economic developments and the impact of external challenges, including global geopolitical tensions.
The IMF also highlighted Pakistan’s ongoing policy direction, including efforts to maintain economic stability. It noted that the State Bank of Pakistan will continue an appropriately tight monetary policy to control inflation expectations. The central bank will also monitor possible price impacts from energy adjustments.
Fiscal Targets and Monetary Policy
Pakistan’s fiscal strategy remained a key part of the discussions between Pakistan and the International Monetary Fund (IMF). In the area of improved public finances, the government’s adherence to a primary surplus objective was one element considered. The flexibility of the exchange rate was also a key feature that could be useful in managing external shocks. The International Monetary Fund (IMF) believes that such measures are vital to sustain macroeconomic stability and facilitate economic growth. It added that there is a continued focus on the risk of inflation and other external factors.
Structural Reforms and Future Engagement
Structural reforms, which entail restructuring the energy sector, state-owned enterprises, and capital markets, were also examined on the part of both parties. Structural reforms would be made in order to improve efficiency, encourage private investment, and attain sustainable economic growth. Climate-related reforms were also part of the agenda under the Resilience and Sustainability Facility. This includes disaster risk financing and integrating climate considerations into national planning and budgeting.
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The IMF appreciated Pakistan’s active participation and constructive engagement throughout the discussions. It noted that progress under the ongoing reform program has been steady and in the right direction, reflecting continued cooperation between both sides. The Fund also said that discussions on the upcoming federal budget will not end here and are expected to continue over the next few days as policy details are further reviewed and aligned.
Looking ahead, the IMF shared that the next mission is planned for the second half of 2026. This visit will include broader consultations as well as formal program reviews to assess overall progress and future policy steps under the ongoing arrangements. News source eTimes Pakistan.
