Aurangzeb, IMF mission review budget preparations and reform agenda

ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wednesday held talks with a visiting International Monetary Fund mission in Islamabad on preparations for the upcoming federal budget and Pakistan’s wider reform programme, according to the finance ministry.

In a statement shared on X, the ministry said the minister briefed the delegation on the country’s macroeconomic outlook, fiscal strategy, reform priorities and the government’s ongoing efforts aimed at ensuring sustainable economic stability and long-term growth.

The ministry said the meeting centred on Pakistan’s macroeconomic stabilisation efforts, planning for the next federal budget and the broader reform agenda intended to strengthen fiscal and external sustainability while supporting sustainable economic growth.

According to the ministry, both sides discussed the need to keep reforms on track, safeguard macroeconomic stability and move forward with structural changes to encourage investment, improve productivity and support export-led growth within what it described as a balanced and forward-looking policy framework.

Welcoming the IMF delegation to Islamabad, Aurangzeb appreciated the Fund’s continued engagement and constructive dialogue with the government, the ministry said. He particularly acknowledged the productive discussions that began during the spring meetings in Washington earlier this year.

The finance minister also shared what the ministry described as encouraging developments in the external sector, pointing to positive trends in remittances and exports. The ministry said he noted that recent figures showed exports had improved on both a month-on-month and year-on-year basis, reflecting greater resilience in the economy and a gradual strengthening of macroeconomic fundamentals.

At the same time, Aurangzeb said that although stabilisation measures had delivered encouraging outcomes, the government remained fully aware of the structural issues facing the economy, especially external liabilities and the need to speed up sustainable, export-led growth, according to the ministry.

The ministry said he reaffirmed the government’s commitment to deepening reforms designed to reinforce macroeconomic stability without undermining long-term growth prospects. He underscored the importance of moving Pakistan away from recurring boom-and-bust cycles through structural reforms, productivity enhancement, deregulation, and improved export competitiveness.

The ministry further said Aurangzeb told the IMF mission that the government’s reform agenda had been carefully calibrated in consultation with international experts and economists. He said the current policy steps were not based on short-term considerations but were part of a broader and technically grounded economic transformation strategy endorsed at the highest level.

During the meeting, the minister also briefed the IMF team on Pakistan’s continued engagement with international development partners. The ministry said this included ongoing economic cooperation initiatives with China and efforts to mobilise long-term investment aligned with the country’s strategic economic priorities.

IMF mission acknowledges progress

According to the finance ministry, the visiting IMF mission is led by Iva Petrova. The ministry said the delegation acknowledged the positive progress made by Pakistan in preserving macroeconomic stability despite what it described as a challenging global and regional environment.

The IMF mission appreciated the government’s continued commitment to prudent economic management and implementation of reforms. The team emphasised the importance of sustaining reform momentum, maintaining fiscal discipline, and advancing structural reforms to support durable and inclusive economic growth.

The ministry said discussions also covered the broader macroeconomic framework, the government’s reform agenda and priorities for the upcoming budget.

The IMF mission reaffirmed its commitment to continued engagement and constructive cooperation with the government of Pakistan in support of the country’s economic reform programme and long-term economic resilience.