IMF deputy chief calls for stronger revenues, adequate reserves buffer to support Pakistan's development

According to Profit by Pakistan Today, IMF Deputy Managing Director Nigel Clarke told Finance Minister Muhammad Aurangzeb in Bangkok that larger reserve cushions and higher tax collection are needed to fund spending on people, infrastructure and public services. Their talks, held during the 2026 annual gatherings of the World Bank Group and IMF, covered sustainable growth, consistent policymaking and keeping health and education budgets protected while maintaining fiscal discipline. Aurangzeb thanked the Fund and stressed that reforms need firm political backing and steady execution.

Separately, at the MENAP meeting with the IMF Managing Director, the minister placed the fiscal deficit at its lowest level in 22 years and economic growth reached 3.7%. He also pointed to foreign exchange reserves that can cover three months of imports, three straight years of primary surpluses and sovereign rating upgrades. Aurangzeb cited the September Eurobond sale and the staff-level agreement reached on October 7 as signs of progress.

He said fuel support is designed to shield vulnerable groups while remaining budget-neutral and limited in duration. He also noted a declining debt-to-GDP ratio and renewed market access. On the regional agenda, he urged Pakistan to diversify its energy mix and trade routes, deepen regional ties, and channel money into logistics and food systems. He closed by reaffirming support for multilateral engagement and Pakistan's readiness to take an active part in regional cooperation.