Pakistan’s 24th IMF program will be last, says FM Aurangzeb

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, announced that Pakistan’s ongoing IMF programme will be the country’s last.

Speaking at a press conference in Islamabad, he emphasized that the IMF package is meant for the entire country, not just the federal government, and underscored the need for tough decisions to achieve economic stability.

Pakistan has participated in 24 IMF programmes since joining the International Monetary Fund in 1950, with the latest being a 37-month Extended Fund Facility (EFF) approved in September 2024.

Aurangzeb stressed the need for a fundamental shift in the country’s economic approach, stating, “If we claim this is our last IMF programme, we must radically change the DNA of our economy.”

The minister, alongside Federal Board of Revenue Chairman Rashid Mahmood Langrial, explained that the two primary reasons for seeking the EFF are to ensure macroeconomic stability and implement critical reforms under a homegrown economic agenda.

He warned that failing to act now would further strain the salaried class.

Aurangzeb highlighted the need for population control to achieve sustainable development and emphasized the necessity of increasing tax revenues while ensuring that tax authorities respect human rights. He discussed plans to use technology extensively and announced the creation of digital checkpoints to curb smuggling.

In cooperation with provincial governments, Aurangzeb also spoke about efforts to reduce prices, urging provinces to focus on price control committees to combat inflation. He noted that transportation fares should decrease alongside fuel prices.

Additionally, the finance minister shared that open discussions with the World Bank and IMF on climate financing have taken place, with the World Bank set to provide both funding and technical assistance for climate-related projects.

Reaffirming the government’s commitment to homegrown reforms, Aurangzeb stressed the importance of transforming Pakistan’s economy into an export-driven model to promote sustainable growth.

He noted that while macroeconomic stability had been maintained during the first quarter of the fiscal year, it needs to be solidified to support long-term, inclusive growth, remarking, “Macroeconomic stability is not an end, but a means to an end.”