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Fiscal Stability First: Aurangzeb Briefs IMF Mission on Budget Prep and Export-Led Reform Strategy
Finance Minister Muhammad Aurangzeb met with a visiting IMF mission led by Iva Petrova on Wednesday to align on the FY2025-26 federal budget and Pakistan's long-term stabilization goals.
ND
by News Desk
2026-05-13
Fiscal Stability First: Aurangzeb Briefs IMF Mission on Budget Prep and Export-Led Reform Strategy

The discussions in Islamabad served as a critical pulse check on Pakistan’s $7 billion Extended Fund Facility (EFF). Following the recent $1.3 billion disbursement from the IMF, both sides emphasized that while stability has returned, the ongoing Middle East conflict poses a persistent risk to regional economic security.

  • The Salaried Class Strategy: In a significant policy shift, the government is considering lowering income tax rates or raising the taxable threshold for salaried individuals. To fund this relief, sources indicate the budget may keep government salaries and pensions at current levels, redistributing the fiscal savings to provide broader relief to the tax-paying workforce.

  • External Sector Gains: Aurangzeb briefed the mission on "encouraging" growth in remittances and exports. He noted that the resilience of the external sector is helping strengthen macroeconomic fundamentals despite global volatility.

  • Structural Transformation: The Finance Minister reiterated that the reform agenda—focused on deregulation, productivity, and competitiveness—is a long-term strategy endorsed at the highest levels, rather than a temporary fix.

  • Global Partnerships: Beyond the IMF, Aurangzeb highlighted continued economic cooperation with China and other development partners to mobilize investment aligned with Pakistan's strategic goals.

  • IMF Response: The mission praised Pakistan’s "prudent economic management" in a challenging regional environment but stressed that maintaining fiscal discipline and the momentum of structural reforms is non-negotiable for inclusive growth.
Tagged:

#MuhammadAurangzeb #IMF #PakistanEconomy #FederalBudget2026 #EconomicReform #FiscalDiscipline #Islamabad #Macroeconomics #ExportGrowth #IMFMission #BreakingNews #PakistanFinance #SustainableGrowth #GlobalEconomy #FiscalStability #EconomicStabilization #FY2026
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