Projecting Pakistan’s fiscal deficit at around 3.2 per cent of the gross domestic product (GDP) and a slightly declining primary surplus from 2.5pc, the International Monetary Fund (IMF) has advised phasing out fiscally draining fuel subsidies, addressing contingent liabilities and broadening the tax base for credible medium-term sustainability. In its twice-a-year Fiscal Monitor 2026, the […]
International Monetary Fund (IMF)
IMF warns floods to slow Pakistan’s growth, push up inflation
The International Monetary Fund (IMF) has warned that recent floods could seriously hurt Pakistan’s economy. Growth may slow, inflation may rise, and the current account deficit could widen. These effects follow major flooding during the third quarter of 2025. The IMF shared its findings in its latest Regional Economic Outlook report for the Middle East […]
IMF pushes Pakistan to raise taxes on solar and internet services
The Government of Pakistan and the International Monetary Fund (IMF) are discussing possible tax increases on solar panels and internet services. These proposed hikes are part of “emergency tax measures” tied to the IMF’s second review of Pakistan’s economic reform program. Sources say these steps are aimed at securing extra revenue if the government fails […]
IMF approves $1.2 billion for Pakistan, praises economic progress
The International Monetary Fund (IMF) reached a staff-level agreement with Pakistan on Wednesday. This deal allows Pakistan to receive $1.2 billion after final approval. The funds include $1 billion from the Extended Fund Facility and $200 million from the Resilience and Sustainability Facility. This will bring total disbursements to around $3.3 billion under both programs. […]
IMF Agreement Reached with Pakistan on Loan and Climate Facility Reviews
Pakistan and the International Monetary Fund (IMF) have reached a staff-level IMF agreement to review key financial programs. The agreement covers the $7 billion Extended Fund Facility (EFF) and the $1.1 billion Resilience and Sustainability Facility (RSF). It aims to support Pakistan’s economic stability and climate resilience. According to an IMF statement, the agreement follows […]
IMF sees Pakistan missing key economic targets this year
The International Monetary Fund (IMF) has warned that Pakistan may not meet its key economic targets for the current fiscal year. In its latest World Economic Outlook report, the IMF projected slower economic growth and slightly higher inflation than what the government has estimated. The report highlights growing concerns over Pakistan’s ability to recover quickly […]
Aurangzeb confident of $1.2B IMF agreement within days
Pakistan is close to reaching a key agreement with the International Monetary Fund (IMF) this week. Finance Minister Muhammad Aurangzeb confirmed that talks have made strong progress. He said Pakistan hopes to sign a staff-level agreement (SLA) within days. The deal will unlock a $1.2 billion payout under the IMF’s $7 billion loan programme. Talks […]
Pakistan, IMF reaffirm push for reforms in key Washington talks
Washington, D.C. — Pakistan and the International Monetary Fund (IMF) have agreed to keep pushing forward with economic reforms. This consensus came during Finance Minister Senator Muhammad Aurangzeb’s meeting with IMF Director Jihad Azour. The two met on the sidelines of the IMF and World Bank Annual Meetings. Both parties reviewed progress on the Extended […]
Aurangzeb heads to Washington for crucial IMF talks
Finance Minister Muhammad Aurangzeb has departed for the United States to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank (WB). His six-day visit comes at a crucial time as Pakistan seeks to finalise a staff-level agreement (SLA) for ongoing loan programmes worth $8.4 billion. The IMF mission recently concluded […]
IMF cuts federal flood funding, shifts burden to provinces
The International Monetary Fund (IMF) has stopped the federal government from allocating funds to flood-affected areas for relief projects. Today is a crucial day as the IMF mission holds economic review talks with Pakistan’s Ministry of Finance and Ministry of Energy. According to sources, the IMF has been briefed about the Reko Dik copper and […]