Pakistan, IMF discuss targeted relief as Middle East conflict fuels energy prices, inflation risks

Finance Minister Muhammad Aurangzeb and IMF First Deputy Managing Director Dan Katz discussed how the Middle East conflict is affecting energy prices and inflation, and how to provide focused support to low-income families without overstretching the budget. Profit by Pakistan Today reported that the talks were held in Bangkok during the 2026 World Bank Group and IMF annual meetings. The two sides also went over Pakistan's economic stabilisation and how the IMF-backed programme and reform agenda are progressing.

Both sides welcomed the staff-level agreement and noted that fiscal results, currency reserves, price trends and external stability have improved. Aurangzeb cited better investor sentiment, credit rating upgrades for the sovereign and a return to international capital markets. He also restated his administration's pledge to keep fiscal discipline, pursue tax reform, privatisation and growth that can be sustained over time.

Separately, Aurangzeb agreed to take up the chair of the council that governs the Borrowers' Platform on Pakistan's behalf, while acknowledging Egypt's leadership and the work of member countries in setting up the platform. He said the body should concentrate on shared learning and technical cooperation instead of collective bargaining or crisis handling. Meanwhile, Finance Secretary Imdad Ullah Bosal met a Citibank delegation to examine funding routes in local and foreign currency.