Pakistan has assured the International Monetary Fund (IMF) that subsidies will remain targeted, time-bound and within budget limits, as Finance Minister Muhammad Aurangzeb reaffirmed the government’s commitment to economic reforms.
Aurangzeb made the commitment during a meeting with the IMF managing director in Bangkok on Wednesday, on the sidelines of the Middle East, North Africa, Afghanistan and Pakistan (MENAP) meeting held during the 2026 World Bank Group–IMF Annual Meetings.
He said subsidies should focus on low-income households while remaining budget-neutral and temporary to protect vulnerable groups without undermining fiscal discipline.
The finance minister also highlighted Pakistan’s recent economic indicators, including a fiscal deficit at a 22-year low, three consecutive years of primary budget surpluses and economic growth of 3.7 percent.
He said foreign exchange reserves had reached a record level, providing cover for around three months of imports and strengthening the country’s ability to withstand climate-related and regional shocks.
Aurangzeb also cited sovereign credit rating upgrades, Pakistan’s September Eurobond issuance and the IMF staff-level agreement reached on October 7 as signs of progress.
Beyond domestic reforms, he stressed the need to diversify energy supplies and trade routes, strengthen regional economic integration and increase investment in logistics and food systems.
The minister reaffirmed Pakistan’s support for multilateral cooperation and said the country was prepared to play an active role in regional initiatives.
