Finance Minister Muhammad Aurangzeb has stated that Pakistan’s ongoing engagement with the International Monetary Fund (IMF) is progressing constructively, with no significant “showstoppers” identified. An IMF mission, led by Iva Petrova, recently concluded a review of the country’s Extended Fund Facility and Resilience and Sustainability Facility programs in Karachi and Islamabad. Aurangzeb highlighted the strong implementation of the program and the alignment with the government’s commitments. Discussions are continuing virtually, with a focus on resolving remaining issues before a staff-level agreement can be finalized.
The government is prioritizing two key economic reforms: taxation reform to address the challenges faced by businesses in the formal sector, and a digital transformation towards a cashless economy. Aurangzeb noted that 40 to 50 percent of Pakistan’s economy remains undocumented, presenting an opportunity for digitization to improve formal sector participation. The government is actively seeking investment and fostering a supportive environment for existing investors, with ongoing discussions involving Saudi Arabia. The finance minister emphasized the importance of these efforts in achieving sustainable economic growth.