Federal Minister for Finance and Revenue Senator Aurangzeb on Tuesday met the International Monetary Fund (IMF) review mission, marking the start of the third review of Pakistan’s Extended Fund Facility (EFF) and the second review under the Resilience and Sustainability Facility (RSF).
The IMF delegation was led by Ms. Iva Petrova.
According to a statement issued by the Finance Division, the meeting served as the kick-off session for the ongoing programme reviews.
During the discussion, the finance minister said Pakistan had continued consolidating macroeconomic stability achieved under the IMF-supported programmes since the completion of the last review.
He described fiscal discipline and stability as the outcome of sustained and difficult reforms, reaffirming the government’s commitment to maintaining them.
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He said structural reforms, particularly in taxation and the energy sector, remained central to the reform agenda. Comprehensive changes in tax administration, covering improvements in human resources, processes, and technology, were underway with leadership oversight, he added.
Aurangzeb also informed the mission that steps had been taken to fully operationalise the Tax Policy Office to ensure that future taxation policies are based on economic principles aimed at promoting sustainable growth.
On the privatisation and state-owned enterprise reform programme, the minister reiterated the government’s resolve to move forward with key transactions and restructuring initiatives during the year. He said recent developments indicated growing investor confidence and renewed interest from domestic investors, reflecting trust in the economy’s direction.
He added that the privatisation process would continue in a transparent and orderly manner.
The minister also outlined progress on right-sizing the federal government, including the merger of ministries and closure of certain entities, as part of broader public sector reforms to improve efficiency and governance.
Highlighting the government’s export-led growth strategy, he said it was being supported by trade facilitation measures and tariff rationalisation to boost competitiveness and gradually reduce reliance on imports.
Aurangzeb further briefed the IMF team on the government’s response to flood-related challenges during the fiscal year, noting that fiscal buffers had enabled timely rescue and relief efforts. He said macroeconomic stability had enhanced the country’s resilience against external and climate-related shocks.
On economic performance, he said recent indicators pointed to gradual recovery, with improving trends in growth and key sectors. However, he cautioned that global headwinds, including geopolitical developments and volatility in international energy markets, posed potential risks.
A high-level committee had been formed to closely monitor the evolving situation and ensure coordinated policy responses, he added.
The minister stressed that while stabilisation was necessary to restore macroeconomic balance; the government remained mindful of the social impact and would continue to enhance social spending to protect vulnerable segments.
Petrova thanked the minister for the detailed briefing and shared insights from the mission’s earlier discussions with authorities in Karachi. Both sides agreed to continue discussions virtually in the coming days.
The meeting was also attended by State Bank of Pakistan Governor Jameel Ahmad, the finance secretary, chairman of the Federal Board of Revenue, and other senior officials of the Finance Division.
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