Pakistan briefs IMF on key reforms during Washington visit

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Pakistan’s delegation, led by Secretary Finance Imdad Ullah Bosal and Governor State Bank of Pakistan Jameel Ahmed, met with IMF Deputy Managing Director Kenji Okamura in Washington DC on October 22, 2024.

The meeting focused on discussing the country’s ongoing reforms aimed at improving its economic outlook.

The Pakistan delegation outlined key measures, including expanding fiscal space by broadening the tax base, aligning the provincial Agriculture Income Tax with federal income tax regime, rationalizing subsidies, reducing energy sector costs, and rightsizing the government.

They also discussed initiatives to stimulate private sector growth, build climate resilience through Resilience and Sustainability financing, and maintain prudent monetary and external sector policies.

Meanwhile, Pakistan's delegation also met with Jihad Azour, Director of the Middle East and Central Asia Department at the IMF in Washington.

The delegation expressed their gratitude for the IMF's continued support, particularly for the recently approved $7 billion Extended Fund Facility.

The Pakistani delegation detailed the government’s initiatives focused on fiscal consolidation, revenue expansion, and reforms in the energy and state-owned enterprises (SOEs) sectors, which are intended to transition Pakistan’s economy from stabilization to sustained growth.

Jihad Azour, while congratulating Pakistan on the successful commencement of the Fund program, stressed the importance of maintaining the reform trajectory to ensure continued progress and long-term stability.

Yesterday, Federal Finance Minister Muhammad Aurangzeb departed for the United States to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank, as confirmed by the Ministry of Finance.

During his visit, the finance minister is set to engage in high-level talks with senior officials from the IMF and World Bank. He will also meet with his counterparts from China, the UK, Saudi Arabia, the UAE, and Turkiye.

In addition, the Ministry of Finance revealed that meetings with officials from the US State and Treasury Departments are planned. Aurangzeb is also expected to meet representatives from global credit rating agencies and commercial banks, aiming to discuss Pakistan’s financial outlook and ongoing economic reforms.