Pakistan’s Federal Finance Minister, Muhammad Aurangzeb, has firmly ruled out the possibility of introducing a mini-budget following productive discussions with the International Monetary Fund (IMF).
In an interview with Geo News on Saturday, Aurangzeb described the talks with the IMF as “constructive and productive,” adding that while the virtual negotiations were ongoing, some points still required in-person discussions.
His comments came after a visit by an IMF mission, led by Nathan Porter, which concluded its visit to Pakistan on November 15. The finance minister highlighted that the purpose of the IMF visit was not to assess the economy but to build confidence. He stressed that open and fact-based dialogue had taken place, with the IMF team listening carefully to Pakistan’s position and seeming satisfied with the discussions.
The IMF, in a statement, urged Pakistan to expand its tax base by tapping into underutilized revenue sources as the country continues to struggle with improving its tax collection. The global lender also emphasized that such staff visits are routine for countries undergoing semi-annual reviews, allowing engagement with local authorities and stakeholders on economic policies and reform progress.
During the visit, IMF officials discussed the need for continued fiscal discipline, revenue mobilization, and structural reforms in key sectors, particularly energy. They also stressed the importance of transferring more social and development responsibilities to provincial governments.
In addition, the finance minister confirmed that the government remains committed to privatizing state-owned enterprises (SOEs), despite the recent setback in the privatization of Pakistan International Airlines (PIA). He assured that the privatization process would continue, including for other SOEs like power generation companies (Gencos), distribution companies (DISCOs), and airports.
Aurangzeb also touched on the National Fiscal Pact, noting that its approval was delayed by 8-10 days but was well-received by the IMF. He thanked provincial leaders, including Sindh’s Chief Minister Murad Ali Shah, for their support.
On government reforms, the minister shared that rightsizing efforts were continuing in federal ministries, with 11 ministries already completed and five more in progress. He also defended the ongoing reform of the pension system for civil servants, stressing that the bureaucracy would contribute to the pension scheme.
