Ismalabad – Web Desk) – Pakistan has officially committed to achieving an IMF primary surplus 2% GDP FY2028 target, marking a major step in the country’s ongoing economic recovery journey. The International Monetary Fund mission wrapped up its talks in Islamabad this week, leaving with positive signals from Pakistani authorities.
The IMF team, led by advisor Iva Petrova, spent a week in Islamabad from May 13 to 20. The discussions covered the country’s economic progress, budget planning for the next fiscal year, and the impact of ongoing tensions in the Middle East on Pakistan’s finances.
Pakistan is currently running a 7 billion dollar IMF programme. Earlier this month, the fund cleared Pakistan to access around 1.32 billion dollars in fresh funding. Total money released under both programmes has now reached approximately 4.8 billion dollars.
The State Bank of Pakistan reaffirmed its commitment to keeping a tight grip on monetary policy. The central bank wants to keep inflation under control and is watching closely for any ripple effects coming from rising energy prices.
On the exchange rate front, the IMF stressed that a flexible exchange rate should remain a key tool for absorbing economic shocks. It also called for continued efforts to develop a stronger and deeper foreign exchange interbank market in the country.
Talks also touched on structural reforms across several sectors. These included the energy sector, state-owned enterprises, product market liberalisation, and financial sector improvements — all aimed at attracting quality private investment and building long-term growth.
Climate resilience also made it onto the agenda. Progress under the Resilience and Sustainability Facility was reviewed, covering disaster risk financing, climate-aware budget planning, and power subsidy reforms.
Pakistan’s foreign exchange reserves climbed to around 16 billion dollars by end of December, up from 14.5 billion dollars mid-year — better than earlier projections. The IMF noted that growth momentum picked up in the first half of the fiscal year, while inflation stayed broadly contained.
The next IMF mission, which will include the Article IV consultation along with EFF and RSF reviews, is expected to take place in the second half of 2026.
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