In a powerful address during an event hosted by Karandaaz Pakistan and the Pakistan Banks Association (PBA) in Islamabad, Finance Minister Muhammad Aurangzeb acknowledged that multiple efforts were made to block Pakistan’s engagement with the International Monetary Fund (IMF). However, he emphasized that Pakistan’s case was ultimately judged on merit, securing crucial financial backing.
“Every effort was made to ensure that the meeting with the IMF wouldn’t happen—or that if it did, essential matters like the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) wouldn’t be discussed,” said Aurangzeb. “But we have moved past that. Our case was discussed and approved on its merit.”
The remarks were delivered in the context of rising geopolitical tensions between Pakistan and India. Aurangzeb praised the nation’s collective response to recent aggression, drawing a parallel between national defense and the need for unity on the economic front.
“These are very tense moments. The unity shown by our people, armed forces, and political leadership in facing recent aggression is exactly the kind of unity we need to address our economic challenges,” he stated.
Just days before the event, IMF spokesperson Julie Kozack confirmed that Pakistan had successfully met all program targets, allowing the Fund’s Executive Board to approve continued support.
“Pakistan met all of the targets under the Extended Fund Facility,” said Kozack. “Progress on structural reforms was evident, and the Board approved further funding for this reason.”
This approval included a green light for the first review of the 37-month, $7-billion EFF program and an arrangement under the RSF, giving Pakistan access to approximately $1.4 billion in additional funds.
The IMF’s continued engagement is seen as vital to stabilizing Pakistan’s economy, particularly amid rising inflation, fiscal deficits, and external pressures.
