IMF Concludes Negotiations With Pakistan as Central Bank Gives Assurances

The International Monetary Fund (IMF) has concluded its visit to Pakistan, issuing a statement that confirmed constructive discussions with Pakistani authorities on recent economic progress, the implementation of reforms, and the nation’s budget strategy. The talks also covered the potential economic impact of the situation in the Middle East and planning for the upcoming fiscal year’s budget.

Discussions between the IMF staff and Pakistani officials centered on the reform agenda under the Extended Fund Facility (EFF). The IMF emphasized its support for financial stability in Pakistan, stating that talks will continue on achieving gradual fiscal consolidation by broadening the tax base, improving tax administration, and reducing expenditures. These conversations will also address enhancing public financial management in the context of the fiscal year 2027 budget.

The State Bank of Pakistan (SBP) reiterated its firm commitment to maintaining a tight monetary policy to bring down inflation, an assurance made to the visiting delegation. The IMF noted it would continue to monitor the potential effects of rising energy prices on the economy.

For long-term sustainable growth, the IMF stressed the necessity of key structural reforms in the energy, state-owned enterprises (SOE), and financial sectors. The Fund’s statement also highlighted the importance of continuing efforts to increase foreign exchange reserves and attract private investment to ensure economic resilience and stability.