Pakistan and the International Monetary Fund on Tuesday formally began the third review of the country’s Extended Fund Facility (EFF), with Finance Minister Muhammad Aurangzeb reaffirming the government’s commitment to fiscal discipline and structural reforms.
The IMF delegation, led by Iva Petrova, met Aurangzeb in what the Finance Division described as the kick-off session for the ongoing programme reviews. The talks also marked the second review under the Resilience and Sustainability Facility (RSF).
Aurangzeb said macroeconomic stability achieved under the IMF-backed programme was the result of “difficult and sustained reforms,” adding that the government remained firmly committed to maintaining fiscal discipline.
He said tax and energy sector reforms remained at the core of the reform agenda. Efforts are under way to modernise tax administration through improvements in human resources, processes and technology, while steps have been taken to fully operationalise the Tax Policy Office to ensure economically grounded policymaking.
The minister reiterated the government’s resolve to advance privatisation and state-owned enterprise reforms, saying key transactions and restructuring initiatives would move forward during the year. He said investor confidence was improving, reflected in renewed domestic interest.
Aurangzeb also briefed the mission on federal government right-sizing measures, including the merger of ministries and closure of certain entities to improve efficiency and governance.
He described export-led growth as a priority, supported by trade facilitation and tariff rationalisation to boost competitiveness and reduce reliance on imports.
While pointing to gradual economic recovery and improving indicators, the minister cautioned that geopolitical tensions and volatility in global energy markets posed risks. A high-level committee has been formed to monitor developments and coordinate policy responses.
He added that the government remained committed to increasing social protection spending to shield vulnerable groups from the impact of reforms.
Petrova thanked the minister for the detailed briefing and shared feedback from the mission’s earlier meetings in Karachi. Both sides agreed to continue virtual discussions in the coming days.
The meeting was also attended by Governor State Bank of Pakistan Jameel Ahmad, senior finance ministry officials and representatives of the Federal Board of Revenue.
