IMF mission stresses 1.6pc GDP surplus target in Pakistan fiscal talks

ISLAMABAD: The International Monetary Fund (IMF) mission, led by Nathan Porter, visited Pakistan from May 19 to discuss the country’s upcoming budget strategy and broader economic reforms, according to an official statement released on Friday. The discussions primarily focused on Pakistan’s fiscal policies, with Porter focusing on the need for the country to achieve a primary balance surplus target of 1.6 percent of GDP.

The IMF mission urged Pakistan to enhance tax revenue in the next fiscal year and align budget expenditure priorities with economic stability goals.

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Energy sector reforms were also a key topic, with talks on reducing electricity prices and improving efficiency. The IMF stressed the importance of structural reforms to boost economic growth and ensure long-term sustainability.

On monetary policy, the Fund advised the State Bank of Pakistan (SBP) to maintain a tight stance to control inflation, keeping it within the target range of five to seven percent. Additionally, the IMF highlighted the need to stabilise foreign exchange reserves and maintain a market-driven exchange rate to withstand external pressures.

The mission expressed gratitude to federal and provincial governments for their cooperation during the visit and commended Pakistan’s commitment to economic stability. “The constructive engagement with Pakistani authorities is appreciated, and discussions will continue positively,” the IMF statement said.

The visit reflects Pakistan’s ongoing efforts to secure further IMF support amid economic challenges, with both sides pledging to maintain dialogue for sustainable policy implementation.