Finance Minister Muhammad Aurangzeb exuded confidence on Friday as Pakistan edges closer to sealing a critical deal with the International Monetary Fund (IMF), with negotiations reportedly in their final phase. Addressing reporters, Aurangzeb underscored that no major hurdles remain in securing the next tranche of the $7 billion loan program, vital for bolstering Pakistan’s fragile economic recovery.
“We are fully aligned with the IMF’s economic benchmarks and expect a positive outcome soon,” Aurangzeb stated, reaffirming the government’s steadfast commitment to fiscal discipline. The minister’s optimism echoes recent remarks by IMF Mission Chief Nathan Porter, who noted substantial progress toward a Staff-Level Agreement (SLA) during last week’s discussions. Pakistan Nears IMF Deal as Talks Enter Final Stretch
The ongoing talks, which began earlier this month, aim to finalize the first review of the loan program. Despite missing the initial March 14 deadline, both sides have engaged in intensive virtual sessions to iron out pending issues, including the Memorandum of Economic and Financial Policies (MEFP). Key sticking points—trade, taxation, fiscal targets, and circular debt—have reportedly been resolved, with federal authorities hopeful of meeting the IMF Board’s revised March 15 deadline for performance criteria.
Adding to the momentum, State Bank of Pakistan (SBP) Governor Jameel Ahmad dismissed any delays on the central bank’s end during a Public Accounts Committee (PAC) meeting on Thursday. “No bottlenecks here. If there’s any delay, it’s likely with the federal government,” Ahmad clarified, hinting at lingering coordination challenges among ministries. He refrained from pinpointing specific issues but expressed hope for an imminent agreement.
Beyond the IMF negotiations, Aurangzeb also spotlighted Pakistan’s pressing climate challenges, calling for robust climate financing mechanisms to tackle escalating environmental risks. “From melting glaciers to economic fallout in cities like Lahore, the threats are real and immediate,” he warned, while noting delays in utilizing international flood rehabilitation funds due to implementation bottlenecks.
Meanwhile, the PAC meeting stirred controversy with revelations of a proposal to grant Aurangzeb sweeping powers to approve special honoraria for government employees—up to five per department—prompting murmurs of centralized financial control.
As Pakistan races to finalize the IMF deal, the stakes remain high. The incoming funds are expected to provide much-needed relief to an economy grappling with inflation, debt, and climate-induced disruptions, while signaling to global markets a renewed commitment to structural reforms. With both sides inching toward an agreement, all eyes are on the coming days for a definitive breakthrough.
