Muhammad Aurangzeb, IMF review reform progress and macroeconomic performance

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, held a series of meetings with the senior management of the International Monetary Fund (IMF), including Mr. Dan Katz, First Deputy Managing Director, Mr. Nigel Clarke, Deputy Managing Director, Mr. Jihad Azour, Director of the IMF’s Middle East and Central Asia Department, and Ms. Iva Petrova, Mission Chief for Pakistan.

During the meetings, the Finance Minister reviewed Pakistan’s macroeconomic performance and progress under the Extended Fund Facility (EFF), Resilience and Sustainability Facility (RSF), and the broader IMF-supported reform programme.

The Muhammad Aurangzeb highlighted the country’s improved fiscal and external balances, achievement of revenue targets, stronger foreign exchange reserves, record remittances, and an improved current account position.

Discussions also covered tax and energy reforms, privatization, tariff rationalization, debt management, diversification of financing sources, and Pakistan’s return to international capital markets.

Both sides also exchanged views on human capital development, women’s economic participation, demographic challenges, technology-led growth, and private sector-led, export-oriented development.

Finance Minister Muhammad Aurangzeb concluded the meetings by thanking the Fund for recognizing Pakistan’s strong programme ownership and reform progress, while reaffirming the Government’s commitment to fiscal discipline, policy credibility, structural reforms, and long-term economic transformation.

On Tuesday, Pakistan and the International Monetary Fund (IMF) held virtual discussions on various proposals aimed at reducing the gas sector’s circular debt, which has reached nearly Rs3.3 trillion.

According to sources, the talks focused on a proposed settlement plan to reduce the gas sector’s circular debt by around Rs1.7 trillion. However, no agreement was reached between the two sides during the virtual meeting.