President Zardari meets IMF delegation, reaffirms commitment to fiscal reforms

ISLAMABAD: President Asif Ali Zardari said on Tuesday that Pakistan was committed to fiscal sustainability, energy sector reforms, privatisation and social protection. He said the country would ensure inclusive and environment-friendly economic growth. He was speaking at a meeting at the Aiwan-e-Sadr with Jihad Azour, Director of the IMF’s Middle East and Central Asia Department.

According to a press release issued by the Presidency, the president said the country had moved from economic stabilisation towards recovery. He said the economy grew to $452.1 billion in the fiscal year 2025-26, while real GDP growth rose to 3.7 per cent from 3.2 per cent the previous year.

The president said the fiscal deficit fell to 2.6 per cent of GDP in the same year. He said the country also achieved a primary surplus for the third consecutive year.

President Zardari thanked the IMF for its support for the reform programme under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF). Referring to the completion of the fourth review of the EFF and the third review of the RSF, and to the staff-level agreement, he expressed confidence in progress towards economic recovery and stability.

He said the government was committed to increasing revenues, improving tax administration and reforming state-owned enterprises. Steps to widen tax documentation, digitise collections and curb tax evasion were continuing. He said the reform programme had the support of all political stakeholders, and the provincial governments were also playing their part in achieving the agreed targets. The president also mentioned Pakistan’s efforts to promote peace during the ongoing conflict in the Middle East.

Jihad Azour acknowledged Pakistan’s continued engagement with the IMF under the ongoing programme. He stressed the need to strengthen macroeconomic stability, maintain fiscal discipline and continue reforms for sustainable growth.

The IMF delegation also included Iva Petrova, the IMF’s mission chief for Pakistan, and Mahir Binici, the resident representative. Finance Minister Muhammad Aurangzeb, Senator Sherry Rehman, Senator Saleem Mandviwalla, former finance minister Syed Naveed Qamar and the finance secretary also attended the meeting.

Pakistan is engaged with the IMF under a $7 billion EFF and a $1.4 billion RSF. A staff-level agreement on the fourth and third reviews was reached this month. It is subject to approval by the Executive Board. After approval, Pakistan will receive about $1 billion under the EFF and about $210 million under the RSF. Total disbursements under the two arrangements will then reach about $5.7 billion. In 2027, Pakistan will chair the Boards of Governors of the IMF and the World Bank Group, for the first time since 1953.