Islamabad: The International Monetary Fund (IMF) concluded talks with Pakistan’s finance ministry on Wednesday, saying authorities are committed to a primary surplus target of 2% of GDP for FY2027-28.
The IMF mission, led by adviser Iva Petrova, visited Islamabad from May 13 to 20 to discuss economic developments, fiscal plans, reform progress and disruptions linked to the Middle East conflict.
The talks followed the IMF’s approval earlier in May for Pakistan to access about USD 1.32 billion in fresh funding under its USD 7 billion programme.
The State Bank of Pakistan (SBP) committed to maintaining an “appropriately tight monetary policy stance” to anchor inflation expectations, the IMF said. The central bank will also monitor possible second-round effects from energy price increases.
The IMF said exchange rate flexibility should continue to act as a shock absorber, while authorities should continue to build a deeper foreign exchange interbank market.
Discussions also covered structural reforms in the energy sector, state-owned enterprises, product-market liberalisation, and financial-sector changes aimed at supporting durable growth and private investment.
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Under the Resilience and Sustainability Facility (RSF), the IMF said talks covered a disaster risk financing framework, climate integration in budget planning and power subsidy reforms.
The IMF said discussions on the FY2027 budget would continue in the coming days. The next mission, expected in the second half of 2026, is planned to include the Article IV consultation and reviews under the Extended Fund Facility and RSF.
