Pakistan’s government has formally requested proposals from key economic ministries to identify potential concessions from the International Monetary Fund (IMF) in an effort to address obstacles to economic growth and create a more realistic budget framework, The Express Tribune reported.
The decision, made after a recent review of the country’s economic situation, comes as the existing economic structure has been found to be inadequate for attracting foreign investment or delivering long-term growth.
Finance Minister Muhammad Aurangzeb held the first meeting with economic ministries on Thursday, requesting them to submit proposals that outline a future roadmap for economic reform.
These discussions are focused on maintaining Pakistan’s engagement with the IMF programme until September 2027 while exploring options for an eventual exit once the current $7 billion bailout package expires. In parallel, authorities are conducting a review of Pakistan’s policies to address the broader economic issues that are hindering export growth and investment.
According to the report, the meeting with economic ministries also raised concerns about Pakistan’s budget, with officials pointing to missed tax targets and the use of delayed refunds to inflate revenue figures. Some industries also highlighted that levies on captive power plants were undermining the financial stability of public-sector gas companies. A key focus of the discussions was how to align Pakistan’s economic reforms with global market trends and the digital economy.
The government intends to complete the ongoing assessments by March 2026, with the dual objective of attracting investment, particularly from Saudi Arabia, and seeking IMF relief during the next programme review scheduled for late February.
The review found that key sectors, including textiles, lack complete value chains needed for export competitiveness. Government sources noted that even the textile sector suffers from fragmented supply chains.
The government is also working with Saudi Arabia to deepen commercial ties under the Saudi-Pakistan Economic Cooperation Framework. A 90-day activation plan has been prepared to focus on 12 joint working groups in sectors such as agriculture, IT, mining, tourism, and energy.
The aim is to identify structural gaps and guide economic reforms that can attract investment and improve competitiveness.
Earlier, Planning Minister Ahsan Iqbal had linked a permanent exit from the IMF to raising Pakistan’s exports to $63 billion by 2029, which would require a 100% increase over four years.