Pakistan on track for IMF loan as economic targets remain intact despite external pressure, finance minister tells NA panel

Finance Minister Muhammad Aurangzeb told the National Assembly Standing Committee on Finance on Thursday that Pakistan remained broadly on track to meet its key economic targets despite regional tensions and external pressures, expressing confidence that the International Monetary Fund Executive Board would approve the country’s next loan tranche.

Briefing the committee chaired by Syed Naveed Qamar, the finance minister said Pakistan had successfully achieved its fiscal and external sector targets until April 2026 through prudent fiscal management and measures aimed at improving investor confidence and macroeconomic stability.

Aurangzeb said the IMF Executive Board was scheduled to meet today [Friday] and added that Pakistan had already secured a staff-level agreement with the IMF, which had been endorsed by the Fund’s management.

He said exports had recorded growth on both monthly and annual bases, while remittances and information technology exports also continued to increase.

According to the finance minister, Pakistan was expected to remain in current account surplus, while foreign exchange reserves were projected to reach the equivalent of three months of imports by June.

Aurangzeb told lawmakers that Pakistan’s economic position was significantly stronger compared to previous crises, referring to the 2025 floods that affected three provinces.

He said the government managed the situation without seeking international financial assistance, unlike the 2022 floods when external support had been requested after flooding in one province.

The finance minister said Pakistan had successfully issued $750 million in bonds despite challenging global conditions and was preparing to launch a $250 million Panda Bond during the current year.

He added that inflows under the Roshan Digital Account scheme had increased, with around $260 million received in March and expectations of further inflows in April.

Members of the committee welcomed the improvement in remittance inflows, progress on Panda Bonds and Pakistan’s access to international capital markets through Eurobond issuances.

However, lawmakers stressed the need to sustain economic growth by strengthening exports, diversifying export markets and addressing supply-side constraints.

Aurangzeb acknowledged that rising petroleum imports had increased the import bill and said inflation remained a challenge for consumers, although the government had taken measures to maintain macroeconomic stability.

He said economic growth for the current fiscal year was expected to remain between 3.7% and 4%.

The committee also received a briefing from the State Bank of Pakistan governor regarding foreign investment policy, capital repatriation, investor concerns and steps being taken to improve investor facilitation.

Later, speaking to journalists outside Parliament House, Aurangzeb declined to comment on possible changes in electricity prices, saying Prime Minister Shehbaz Sharif and the Ministry of Energy were working on power sector reforms and would share details later.