Finance Minister Muhammad Aurangzeb announced on Tuesday that an International Monetary Fund (IMF) delegation will arrive in Pakistan at the end of September 2025, with the country expecting to secure the third tranche of $1 billion following the completion of the next economic review.
Speaking informally to SAMAA, Aurangzeb confirmed that preparations for the review are complete. So far, Pakistan has received $2.1 billion from the $7 billion Extended Fund Facility (EFF), which spans 37 months.
The minister highlighted that Pakistan International Airlines (PIA) has reopened routes to Europe and the United Kingdom, attracting significant interest from bidders as part of its privatization process. While PIA’s performance has improved, Aurangzeb noted that reforms for other loss-making state-owned enterprises—responsible for a collective loss of Rs6 trillion—will take time. Currently, 24 such entities are earmarked for privatization, with governance reforms already under way.
Aurangzeb stated that civil service pension reforms have been implemented, privatization efforts will accelerate this year, and rightsizing is ongoing in 43 ministries and more than 400 departments. He also reported a Rs1 trillion reduction in debt servicing costs last year.
Emphasizing collaboration, the minister said the prime minister has directed that all policy decisions be made in consultation with the private sector. Discussions with traders over the past six weeks have been constructive, though complete consensus on all matters is not always possible.
The finance minister further revealed that agreements have been made to reduce electricity tariffs, with a dedicated task force working to lower energy costs in the coming days. He highlighted that Pakistan’s economic progress has been recognized internationally, with two major global rating agencies upgrading the country’s standing and a third expected to follow.
Aurangzeb also confirmed that the government aims to issue Panda bonds before the year ends, the policy interest rate has dropped to 11%, and CEO confidence has risen by 84%. He stressed the importance of leveraging trade agreements with the United States to further boost the economy.
