An International Monetary Fund (IMF) mission wrapped up discussions with finance ministry officials in Islamabad on Wednesday, covering economic developments, fiscal plans for the next fiscal year and progress on reforms under fund-supported programmes.
The mission, led by advisor Iva Petrova, visited Islamabad from May 13 to 20. Talks also took in the impact of disruptions linked to the conflict in the Middle East.
Pakistani authorities committed to a primary surplus target of two percent of gross domestic product for FY2027-28, the fund disclosed.
The State Bank of Pakistan (SBP) has committed to maintaining an “appropriately tight monetary policy stance” to anchor inflation expectations, the IMF noted, adding that the central bank would continue to monitor potential second-round effects from energy price increases.
The fund also stressed that exchange rate flexibility should continue to serve as a shock absorber, and that efforts to build a deeper foreign exchange interbank market should press on.
Talks covered ongoing structural reforms in the energy sector and state-owned enterprises, product market liberalisation and financial sector reforms aimed at supporting private investment, the IMF added.
Progress under the Resilience and Sustainability Facility (RSF) was also reviewed, including work on a disaster risk financing framework, integrating climate considerations into budget and investment planning, and power subsidy reforms.
“The mission thanks the federal and provincial authorities for their constructive engagement, strong collaboration and continued commitment to sound policies,” the fund remarked.
Discussions on the FY2027 budget are set to continue in the coming days. The next mission, expected to include the Article IV consultation and Extended Fund Facility (EFF) and RSF reviews, is anticipated in the second half of 2026.
The IMF earlier this month cleared Pakistan to access around $1.32 billion in fresh funding. The country is currently on a $7 billion IMF programme.
