The International Monetary Fund (IMF) has urged Pakistan to bring inflation within the 5% to 7% target range, as part of ongoing discussions on the country’s upcoming budget. The IMF made this demand during its recent mission to Pakistan, which focused on budget planning for the 2025–26 fiscal year.
According to the official statement issued after the visit, the IMF delegation completed its trip and held constructive talks with Pakistani officials. The mission emphasized achieving a primary budget surplus of 1.6% of GDP, restoring foreign exchange reserves, and ensuring a flexible exchange rate. Pakistani officials reportedly showed confidence in implementing the needed reforms, and talks will continue in the coming days.
The IMF also discussed lowering energy production costs and boosting economic growth through deep structural reforms. It stressed the importance of strengthening Pakistan’s economic policies to ensure long-term stability and close any remaining gaps. Reform in public spending, tax policy, and governance were also key discussion points.
To tackle inflation, the IMF urged Pakistan to maintain a tight monetary policy. It advised the State Bank of Pakistan (SBP) to make monetary decisions based on inflation trends. The Fund also called for stable foreign exchange reserves and a market-driven exchange rate, which would help reduce pressure from external shocks.
IMF Mission Chief Nathan Porter praised the cooperation of both federal and provincial governments during the talks. He appreciated Pakistan’s continued efforts toward economic stability, especially in difficult conditions. Porter also stressed the importance of increasing tax revenues and prioritizing government spending wisely in the next budget. The IMF confirmed that future discussions with Pakistan would continue in a positive and constructive manner.