Pakistan has reaffirmed its commitment to achieving a primary surplus target of 2 percent of GDP in fiscal year 2027 as part of broader efforts to strengthen fiscal stability and improve economic resilience.
According to an official statement, the government plans to continue gradual fiscal consolidation through measures aimed at widening the tax base, improving tax collection, increasing spending efficiency and strengthening public financial management at both federal and provincial levels. Discussions on the FY2027 budget are expected to continue in the coming days.
The State Bank of Pakistan also reiterated its commitment to maintaining a tight monetary policy to keep inflation under control and manage the impact of rising energy prices. Officials stressed that exchange rate flexibility would remain important in absorbing external economic shocks while efforts continue to deepen the foreign exchange market.
Talks also focused on structural reforms in the energy sector, state-owned enterprises and financial markets to encourage sustainable growth and attract private investment.
The next review mission, including Article IV consultations and programme reviews, is expected in the second half of 2026.
