IMF wraps up talks with Pakistan on economic reforms for 2027

The International Monetary Fund mission concluded talks with Pakistani authorities on Wednesday, focusing on economic developments, fiscal plans for the next financial year, and progress on reforms under the country's IMF-supported programmes, the fund said in a statement.

The IMF said Pakistani authorities have committed to a primary surplus target of 2% of gross domestic product in fiscal year 2027.

• The fund's team, led by advisor Iva Petrova, visited Islamabad from May 13-20 for discussions that focused on economic developments, progress on reforms and the impact of disruptions linked to the conflict in the Middle East.

• The IMF earlier in May cleared the South Asian nation to access about $1.32 billion in fresh funding. The country is on a $7 billion IMF program.

• Pakistan's central bank has committed to maintaining an "appropriately tight monetary policy stance" to anchor inflation expectations and will continue to closely monitor potential second-round effects from energy price increases, the IMF said.

• Talks on the fiscal 2027 budget are set to continue in the coming days, the fund added.

• The IMF said its next mission, which will include consultation and reviews under certain arrangements, is planned for the second half of 2026.

  -Mrinmay Dey and Chris Thomas/Reuters