- Focus on economic development, reforms, 2027 budget strategy.
- The SBP reiterates the commitment to a tight monetary policy stance.
- The goal of anchoring inflation expectations remains the main priority.
The International Monetary Fund (IMF) mission on Wednesday concluded its discussions with the officials of the Ministry of Finance, focusing on economic developments, fiscal plans for the next fiscal year (FY2027-28) and progress on reforms under the fund-supported programs, it said in a statement.
The IMF said authorities in Islamabad have committed to a primary surplus target of 2% of gross domestic product by fiscal year 2027.
The foundation’s team, led by adviser Iva Petrova, visited Islamabad from 13-20 May for discussions that focused on economic development, progress on reforms and the impact of disruptions associated with the conflict in the Middle East.
Earlier in May, the IMF approved the South Asian nation to access about $1.32 billion in fresh financing. The country is on a $7 billion IMF program.
The State Bank of Pakistan (SBP) has committed to maintaining an “appropriately tight monetary policy stance” to anchor inflation expectations and will continue to closely monitor potential second-round effects from energy price increases, the IMF said.
Negotiations on the 2027 fiscal policy are set to continue in the coming days, the fund added.
The IMF said its next mission, which will include consultation and reviews under certain arrangements, is scheduled for the second half of 2026.
This is a developing story and will be updated with new information.
