The IMF has concluded talks with Pakistan on its economic outlook, budget plans and reform agenda. The discussions centred on fiscal discipline, inflation risks and external pressures ahead of further budget consultations.
The International Monetary Fund (IMF) has concluded its latest round of discussions with Pakistan, focusing on the country’s economic outlook, upcoming budget plans and the implementation of reforms linked to its ongoing IMF-supported financial programmes.
In a statement released on Wednesday, the IMF said Pakistani authorities had committed to achieving a primary budget surplus target of 2 percent of gross domestic product (GDP) in the 2027 fiscal year as part of efforts to stabilise the economy and maintain fiscal discipline.
The IMF delegation, led by adviser Iva Petrova, visited Islamabad from May 13 to May 20 for detailed consultations with Pakistani officials. The discussions covered recent economic developments, reform progress and the possible impact of growing instability in the Middle East on Pakistan’s economy.
The latest talks come shortly after the IMF approved around $1.32 billion in additional funding for Pakistan earlier this month under the country’s broader $7 billion financial assistance programme.
According to the IMF, Pakistan’s central bank reaffirmed its commitment to maintaining a tight monetary policy stance to control inflation and stabilise economic expectations. The fund noted that authorities would continue closely monitoring the possible spillover effects of rising global energy prices, particularly amid tensions in the Middle East that have increased volatility in oil markets.
Pakistan has been battling persistent inflation, external financing pressures and weakening foreign exchange reserves in recent years, making IMF support crucial for economic stability and investor confidence.
The fund also indicated that discussions on Pakistan’s fiscal year 2027 budget would continue in the coming days as authorities work to finalise revenue and spending targets.
The IMF added that its next mission to Pakistan, which will include consultations and reviews under various arrangements, is expected to take place in the second half of 2026.
With inputs from Reuters
