Finance Minister Muhammad Aurangzeb is heading to Washington to finalize a staff-level agreement (SLA) with the International Monetary Fund (IMF). He said recent talks with the IMF were “very constructive” and that remaining issues are not deal-breakers. He will attend the IMF and World Bank Annual Meetings from October 13 to 18, joined by the SBP governor and finance secretary.
The IMF visit followed major progress under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF). An IMF mission was in Pakistan from September 24 to October 8. The government is hopeful that the SLA will be signed early next week during meetings in Washington.
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While addressing Saudi investors in Karachi, Aurangzeb said Pakistan has achieved macroeconomic stability. He highlighted ongoing structural reforms, especially in taxation and energy. He praised Saudi Arabia’s Vision 2030, saying Pakistan is learning from its execution. The cabinet also approved a strategic defence agreement with Saudi Arabia.
The finance minister shared that Pakistan’s recorded economy stands at $411 billion, but the real size could be closer to $1 trillion. He stressed the need for digitisation and documentation to increase the tax base and promote transparency. Prime Minister Shehbaz Sharif is personally leading reform efforts in taxation and digital transformation.
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Aurangzeb also discussed post-flood recovery, saying rapid assessments are complete. He hinted that external help may be needed in the future. He welcomed Saudi investment in Pakistan and looked forward to further meetings at the Future Investment Initiative (FII) in Riyadh. Meanwhile, key MoUs were signed for energy cooperation and K-Electric ownership transfer.