Pakistan has assured the International Monetary Fund (IMF) that subsidies will remain targeted, time-bound and budget-neutral as the government continues its economic reform programme. Finance Minister Muhammad Aurangzeb reaffirmed the commitment during a meeting with the IMF managing director in Bangkok on Wednesday, October 14, on the sidelines of the 2026 World Bank Group–IMF Annual Meetings.
Aurangzeb said the government would focus on protecting low-income families and vulnerable groups while maintaining fiscal discipline and social stability. He highlighted Pakistan’s economic progress, including a fiscal deficit at a 22-year low, three consecutive years of primary surpluses and economic growth of 3.7%.
He also pointed to higher foreign exchange reserves, sovereign credit rating upgrades, the September Eurobond issuance and the October 7 IMF staff-level agreement as signs of improving economic stability. The minister also stressed the need to diversify energy sources and trade routes, strengthen regional integration and increase investment in logistics and food systems.