KARACHI: Pakistan is continuing with macroeconomic reforms, its finance chief said on Tuesday, as a visiting International Monetary Fund (IMF) delegation formally kicked off the country’s economic review under a $7 billion loan program.
This is the first review carried out by the IMF since Pakistan secured the loan under the Extended Fund Facility (EFF). A nine-member mission of the global lending agency, led by Nathan Porter, landed in the country a day earlier to assess Pakistan’s economic performance before the disbursement of a $1.1 billion tranche.
Pakistan’s macroeconomic indicators have gradually improved since it secured the IMF bailout last year. The country’s consumer price index maintained a downward trend last month, hitting a more than 9-year low at 1.51 percent year-on-year in February.
Pakistan’s current account recorded a surplus of $682 million from July 2024 till January 2025, compared to a deficit of $1.8 billion during the same period of the previous year, according to the central bank data. The Pakistan Stock Exchange (PSX) also reported record gains last year, with frequent bullish trends dominating the market.
“[The] macroeconomic stability has been achieved in the country, and structural reforms are ongoing,” Federal Minister for Finance and Revenue Muhammad Aurangzeb said at an event in Islamabad.
Earlier in the day, Pakistan’s finance ministry released photos showing Aurangzeb, his economic team and the IMF delegation, led by Nathan Porter, holding a meeting.
A successful review and subsequent approvals can take a few weeks before the Washington-based lender releases the funds. However, Pakistan’s finance chief told Reuters his country was “well positioned” to discuss its performance with the visiting IMF team, with which it is expected to hold both technical and policy level talks in the coming days.
According to Pakistan’s Dawn newspaper, the IMF team has expressed concerns about Pakistan’s slow tax collection rate against the required target of Rs1.3 trillion ($4.65 billion) until June. The tax collection is likely to fall short by about Rs600 ($2.15 billion).
However, the newspaper noted, the international lender might look the other way, given the rest of the positive macroeconomic indicators, including a higher-than-expected budget surplus the debt-ridden nation is expected to show in its fiscal plan in June.
“Except for revenue collections, Pakistan has achieved most of its quarterly quantitative targets,” Mohammed Sohail, chief executive officer at Topline Securities, said while speaking to Arab News.
“The IMF may insist on increasing and broadening taxes in the coming budget,” he added.
One of the IMF’s requirements for Pakistan is to privatize loss-making state-owned enterprises, including the national airline and power distribution companies.
The process to sell off such enterprises has already begun, with the government having hired a financial adviser, according to Business Recorder newspaper.
Citing unnamed officials at the power division, the English-language daily said all power sector benchmarks agreed upon with the IMF were progressing as planned.
Pakistan’s finance chief says economic reforms ongoing as IMF begins $7 billion loan review
https://arab.news/nv5xm
Pakistan’s finance chief says economic reforms ongoing as IMF begins $7 billion loan review
- Successful review and subsequent approvals can take a few weeks before IMF disburses $1.1 billion
- Muhammad Aurangzeb says Pakistan is ‘well positioned’ to discuss economic performance with IMF
Pakistan reroutes kinnow exports to Gulf, Asia after Afghan closure – commerce ministry
- Border shutdown with Afghanistan since late 2025 disrupted a key overland route for Pakistan’s citrus exports
- Kinnow shipments earned about $40 million during peak season despite loss of a major regional market
KARACHI: Pakistan has rerouted kinnow orange exports to the Gulf and Southeast Asia after the closure of the Afghan market disrupted one of the country’s largest traditional destinations for the citrus crop, the commerce ministry said on Monday, underscoring a push to diversify export markets amid regional security tensions.
The shift follows Pakistan’s closure of major border crossings with Afghanistan in late 2025 after deadly clashes and a sharp rise in militant attacks that Islamabad says originated from Afghan territory. Pakistan has linked the restrictions to concerns over cross-border militancy, saying trade routes would remain constrained until Kabul takes credible steps to curb militant activity, a charge Afghan authorities deny.
Before the shutdown, bilateral trade between Pakistan and Afghanistan exceeded $1.6 billion annually, with overland routes playing a crucial role in the export of perishables such as kinnow, a Pakistani variety of mandarin orange. Exporters have warned that prolonged border disruptions particularly hurt citrus shipments during the winter harvest, forcing consignments to seek longer and costlier alternative routes.
Despite the disruption, the Ministry of Commerce said exporters successfully redirected shipments to other destinations.
“Priority was given to expanding access to markets in the Middle East, Southeast Asia, and other non-traditional destinations, while ensuring compliance with international quality and phytosanitary standards,” the ministry of commerce said in a statement on Monday.
According to official export figures cited by the ministry, Pakistan earned approximately $40 million from kinnow exports within 45 days, covering December and the first half of January, as shipments maintained momentum despite the loss of the Afghan market.
The ministry said it coordinated closely with the Trade Development Authority of Pakistan (TDAP), overseas trade missions and logistics partners to facilitate rerouting, documentation and market outreach, helping exporters avoid losses during the peak citrus export window.
Officials said the diversification drive helped sustain foreign-exchange inflows and protect growers, packers and exporters across the citrus value chain, while reinforcing Pakistan’s reputation as a reliable supplier in Gulf and Asian markets.
The performance, the ministry added, is being viewed as a positive signal for broader agricultural exports as Pakistan seeks to reduce dependence on a limited number of regional trade routes amid persistent geopolitical and security risks.
