Pakistan is projected to record its lowest budget deficit in 21 years during the outgoing fiscal year 2025–26. The improvement is significant because it signals stronger fiscal discipline under an International Monetary Fund programme. The development impacts government finances, public spending, and economic stability. According to local research house Topline Securities, the budget deficit is […]
IMF Pakistan programme
Pakistan budget 2026–27 eyes heavy taxes
Pakistan’s upcoming federal budget for 2026–27 is expected to introduce heavy taxation measures and subsidy cuts under commitments linked to the International Monetary Fund. Sources indicate the fiscal plan aims to expand revenue sharply, raising concerns over further inflationary pressure on consumers. The total budget size is projected to exceed Rs 17,000 billion. Officials say […]
Electricity rates remain undecided: Finance minister
Finance Minister Muhammad Aurangzeb has avoided giving a clear answer on whether electricity prices will go up or down in Pakistan. He made the remarks during a meeting of the National Assembly Standing Committee on Finance, where lawmakers raised concerns over power subsidies. His response reflects ongoing uncertainty in the country’s energy pricing policy. During […]
Aurangzeb discusses IMF progress with China
Finance Minister Muhammad Aurangzeb appreciated China’s support in Pakistan’s engagements with the International Monetary Fund during talks in Washington. The meeting took place on the sidelines of the IMF-World Bank Spring Meetings 2026. The discussions matter as Pakistan seeks continued financial stability and external support. Aurangzeb met Chinese Finance Minister Lan Fo’an and other senior […]
Pakistan faces financing shift after UAE loan
Pakistan is considering multiple financing options, including Eurobonds, commercial borrowing, and loans from other countries, to replace a $3.5 billion facility from the United Arab Emirates. Finance Minister Muhammad Aurangzeb said all funding avenues remain open as the country manages external pressure on its foreign reserves. The move comes as Pakistan balances debt repayments and […]
Fitch affirms Pakistan rating at B-
Fitch Ratings has affirmed Pakistan’s long-term foreign currency issuer default rating at ‘B-’ with a stable outlook. The global rating agency said progress on fiscal consolidation and macroeconomic stability supported the decision. It noted that reforms under the IMF programme have helped strengthen funding capacity. The outlook reflects cautious optimism about near-term stability. The agency […]
US backs Pakistan’s bold economic reforms
United States reaffirmed its support for Pakistan’s economic reform agenda during a meeting between Charge d’Affaires Natalie Baker and Finance Minister Muhammad Aurangzeb in Islamabad. The US appreciated Pakistan’s efforts to stabilise the economy under challenging circumstances. This underscores ongoing bilateral cooperation and investor confidence in key sectors. Baker highlighted continued US interest in promoting […]
Pakistan races to secure $1bn IMF tranche
Pakistan has begun preparations for its third IMF economic review to secure a $1 billion loan tranche. Officials said the talks are crucial for easing pressure on citizens, industries, and the public sector. The review is expected to conclude by March. The IMF review mission is scheduled to visit Pakistan next month. Government officials are […]