Federal Minister for Finance and Revenue Senator Aurangzeb met the International Monetary Fund (IMF) mission on Tuesday, marking the start of the third review of Pakistan’s Extended Fund Facility (EFF) and second review under the Resilience and Sustainability Facility (RSF). The IMF team was led by Iva Petrova, and the meeting served as the kick-off session for ongoing programme reviews.
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During discussions, Aurangzeb highlighted Pakistan’s continued consolidation of macroeconomic stability achieved under prior IMF-supported programmes. He emphasized fiscal discipline and stability as the result of sustained reforms and reaffirmed the government’s commitment to maintain these policies. Structural reforms in taxation and the energy sector were cited as central to the ongoing agenda, including enhancements in tax administration, human resources, processes, and technology.
The minister updated the IMF on operationalising the Tax Policy Office to ensure future taxation policies are economically grounded and promote sustainable growth. He also reiterated progress on privatisation and state-owned enterprise reforms, noting renewed investor confidence and the transparent, orderly continuation of transactions. Aurangzeb highlighted right-sizing federal ministries and closing certain entities to improve public sector efficiency and governance.
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Aurangzeb outlined Pakistan’s export-led growth strategy, supported by trade facilitation measures and tariff rationalisation to boost competitiveness and reduce import reliance. He also briefed the IMF on fiscal response to flood-related challenges, noting that macroeconomic stability enhanced resilience against external and climate-related shocks. He cautioned that global headwinds, including geopolitical tensions and volatile energy markets, could pose risks despite gradual recovery in key economic sectors.
The meeting was attended by State Bank of Pakistan Governor Jameel Ahmad, the finance secretary, chairman of the Federal Board of Revenue, and other senior Finance Division officials. Petrova thanked the minister for the briefing, and both sides agreed to continue discussions virtually in the coming days to advance programme reviews.