Pakistan Vows to Make Current IMF Program Its Last

Federal Minister for Finance and Revenue, Senator Muhammad Aurangzeb, has announced that Pakistan’s current International Monetary Fund (IMF) program will be its last. This bold statement comes as Pakistan has availed 25 IMF programs since joining in 1950, with the most recent being a 37-month Extended Fund Facility (EFF) approved in September 2024.

Reasons for the IMF Program

Aurangzeb cited two primary reasons for seeking the IMF’s EFF:

• Achieving macroeconomic stability
• Implementing critical reforms under Pakistan’s homegrown economic agenda

Need for Fundamental Change

The minister emphasized the need for a new approach, stating that Pakistan must “change the DNA of the economy fundamentally” to ensure sustainable growth. This includes:

• Controlling population growth
• Increasing tax revenues while respecting human rights
• Utilizing technology to combat smuggling
• Collaborating with provincial governments to reduce prices

Climate Financing

Aurangzeb also discussed ongoing discussions with the World Bank and IMF regarding climate financing. The World Bank will provide funding and technical support for climate-related initiatives.

Macroeconomic Stability

The minister stressed that macroeconomic stability is crucial for sustainable growth, saying:

“Macroeconomic stability is not an end in itself, it is a means to an end.”

Pakistan’s current IMF program aims to support the country’s efforts to cement macroeconomic stability and create conditions for stronger, more inclusive growth.

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