FinMin Aurangzeb discusses upcoming budget preparations, economic reforms in meeting with IMF mission

Mission chief acknowledges Pakistan's positive progress in maintaining macroeconomic stability despite challenges

Finance Minister Muhammad Aurangzeb on Wednesday held a meeting with the visiting IMF mission to review Pakistan’s macroeconomic outlook, discussed the upcoming budget preparations and ongoing reforms aimed at strengthening economic stability and sustainable growth.

According to a statement issued by the Ministry of Finance, the discussions focused on Pakistan's macroeconomic stabilisation efforts, preparations for the upcoming federal budget, and the broader reform agenda aimed at strengthening fiscal and external sustainability.

"Both sides exchanged views on maintaining reform momentum, preserving macroeconomic stability, and advancing structural reforms to promote investment, productivity, and export-led growth within a balanced and forward-looking policy framework," it stated.

Finance Minister Senator Muhammad Aurangzeb Briefs Visiting IMF Mission

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, today briefed the visiting International Monetary Fund (IMF) Mission on Pakistan’s macroeconomic outlook, fiscal strategy, reform… pic.twitter.com/n3x8iY6sfz

— Ministry of Finance, Government of Pakistan (@Financegovpk) May 13, 2026

The finance minister expressed his appreciation to the Fund's continued engagement and dialogue with the Pakistani government, particularly acknowledging the discussions held during the Spring Meetings in Washington.

The finance ministry stated that while sharing developments in Pakistan's external sector, Aurangzeb highlighted positive trends in remittances and export performance. He briefed the delegation on recent data that indicated progress in exports on both a month-on-month and a year-on-year basis, "reflecting growing resilience in the economy and a gradual strengthening of macroeconomic fundamentals."

Further, the finance minister emphasised that while economic stabilisation efforts had produced promising results, the government "remained fully mindful of the structural challenges confronting the economy, particularly external liabilities and the need to accelerate sustainable, export-led growth."

Reiterating the government's commitment to "deepening reforms aimed at strengthening macroeconomic stability without compromising long-term growth prospects," Aurangzeb underscored the importance of moving Pakistan away from recurring boom-and-bust cycles through structural reforms, productivity enhancement, deregulation, and improved export competitiveness.

Read: Petroleum levy jumps 45% to Rs1.2tr

According to the ministry, Aurangzeb stated that the government's reform agenda had been "carefully calibrated in consultation with international experts and economists," noting that ongoing policy measures were not driven by short-term considerations. Instead, the ministry noted, Aurangzeb stated that the measures formed part of a "broader and technically grounded economic transformation strategy endorsed at the highest level."

The IMF mission was also briefed on Pakistan's continued engagement with its international development partners, such as China. The briefing included Pakistan's ongoing economic cooperation initiatives with China and "efforts aimed at mobilising long-term investment aligned with the country’s strategic economic priorities."

The mission, according to the finance ministry, was led by Iva Petrova, who "acknowledged the positive progress made by Pakistan." The delegation also appreciated the government's commitment to "prudent economic management and reform implementation."

Emphasising the importance of sustaining reform momentum, the IMF delegation also called for the maintenance of fiscal discipline and the advancement of structural reforms to support durable and inclusive economic growth.

"Discussions during the meeting also focused on the broader macroeconomic framework, the government’s reform agenda, and priorities for the upcoming budget," the ministry said.

Read More: IMF adds 11 new conditions

The IMF team reaffirmed its commitment to continued engagement and constructive cooperation with the Pakistani government in support of the country’s economic reform programme and long-term economic resilience.

The meeting was attended by Governor State Bank of Pakistan Jameel Ahmad, Secretary Finance Division Imdad Ullah Bosal, Chairman Federal Board of Revenue Rashid Mahmood Langrial, and senior officials of the finance and revenue division, as well as the tax policy office.

The meeting came after the SBP announced it had received about $1.3 billion from the IMF under its Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programmes. The IMF Executive Board completed the third review under the EFF in its meeting held on May 8, 2026, approving the disbursement of SDR 760 million for Pakistan.

Further, the SBP said that the executive board also approved the disbursement of the second tranche of SDR 154 million under the RSF. It revealed that the bank had received SDR 914 million (about US $1.3 billion) under the EFF and RSF.

Last Friday, the executive board had approved $1.2 billion worth of loan tranches after Pakistan accepted a dozen new conditions and assured it would stick to the pre-war programme targets to stay on the course of stabilisation.