Pakistan Assures IMF Subsidies Will Be Limited

Pakistan’s Finance Minister, Muhammad Aurangzeb, reiterated the government’s dedication to economic reforms and subsidies for low-income families during a recent meeting with the International Monetary Fund’s managing director in Bangkok. At the MENAP meeting held on the sidelines of the 2026 World Bank Group–IMF Annual Meetings, Aurangzeb emphasized that subsidies should be budget-neutral, aimed at specific groups, and have a limited duration.

He also highlighted recent economic achievements, such as a fiscal deficit at a 22-year low, three years of primary surpluses, and an economic growth rate of 3.7 percent. Aurangzeb noted the country’s record foreign exchange reserves, capable of covering three months of imports, along with stronger buffers against climate-related and regional shocks.

Furthermore, he cited sovereign credit rating upgrades, Pakistan’s September Eurobond issuance, and the IMF staff-level agreement signed on October 7 as additional indicators of progress. Aurangzeb advocated for diversified energy sources, improved trade routes, deeper regional integration, and increased investment in logistics and food systems.

He reaffirmed Pakistan’s commitment to multilateralism and expressed readiness to actively contribute to regional cooperation.