Prime Minister Shehbaz Sharif reaffirmed his government’s commitment to economic reforms during a meeting with an International Monetary Fund (IMF) delegation on Thursday. As Pakistan prepares its 2025-26 budget, Shehbaz stated that the country is now shifting from economic stability toward sustainable growth.
Focus on Reform and Growth
The meeting took place at the Prime Minister’s Office, led by IMF’s Jihad Azour, Director for the Middle East and Central Asia Department. The prime minister stressed that his administration aims to fast-track institutional reforms while sustaining macroeconomic gains. He emphasized that long-term economic resilience depends on efficient institutions and inclusive governance.
IMF Expresses Satisfaction
The IMF delegation expressed satisfaction with the government’s reform agenda. They noted positive progress under the ongoing IMF programme and pledged continued support.
Key cabinet members, including Finance Minister Muhammad Aurangzeb and Minister for Planning Ahsan Iqbal, also attended the meeting.
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Strong Fiscal Performance
Earlier this month, the IMF approved the immediate disbursement of $1 billion to Pakistan under the Extended Fund Facility (EFF). The Fund also approved an additional $1.4 billion under the Resilience and Sustainability Facility (RSF).
According to the IMF, Pakistan’s fiscal performance has shown notable improvement. A primary budget surplus of 2% of GDP was achieved in the first half of FY25, keeping the country on track to meet its 2.1% target by the end of the fiscal year.
Inflation Drops, Reserves Rise
Inflation fell to a historic low of 0.3% in April. With improved domestic and external conditions, the State Bank of Pakistan has reduced the policy rate by 1100 basis points since June 2025.
Gross foreign reserves rose to $10.3 billion by the end of April and are expected to reach $13.9 billion by June’s end.
Climate and Economic Resilience
The RSF aims to help Pakistan reduce its vulnerability to natural disasters while enhancing both economic and climate resilience—key elements of the country’s broader development strategy.
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