Pakistan’s Finance Minister Muhammad Aurangzeb has announced that an International Monetary Fund (IMF) mission will arrive in the country later this month for the third review of the ongoing IMF programme. Speaking to media after a meeting of the Senate Standing Committee on Finance and Revenue in Islamabad on Wednesday, Aurangzeb emphasized the government’s confidence in economic stability.
No External Financing Gap
The minister firmly stated there is no shortfall in external financing. Pakistan has shared its economic framework with the IMF, which shows no financing gap. This comes amid ongoing rollover discussions with the UAE, which remain on track according to officials. The government denied any issues with short-term rollovers, clarifying that talks are progressing as planned.
Third Review Under Current Programme
The upcoming IMF visit focuses on the third review of the existing Fund programme, likely the $7 billion Extended Fund Facility (EFF) arrangement. Aurangzeb expressed optimism about reaching a staff-level agreement soon. The review will assess performance on reforms, including fiscal measures and structural benchmarks, to unlock potential disbursements and support continued economic stabilization.
Broader Economic Updates
Aurangzeb highlighted plans to issue Panda bonds in the first quarter of 2026, with discussions ongoing.
Negotiations on the National Finance Commission (NFC) Award are advancing, with a possible meeting after additional technical committee sessions. He stressed the importance of sustainable tax-to-GDP growth for national progress.
Other points included budgetary spending progress, disbursements for women’s financial inclusion via microfinance exceeding Rs20 billion, and no plans to discontinue the Rs5,000 currency note, though new designs with enhanced security are under review.
The announcement reinforces Pakistan’s commitment to IMF-supported reforms while addressing external financing needs through friendly countries and market instruments.