Pakistan is preparing for the arrival of an International Monetary Fund mission later this month for the third review of the ongoing programme, with officials saying the country’s external financing position remains stable.
Finance Minister Muhammad Aurangzeb shared the update while speaking to reporters after a meeting of the Senate Standing Committee on Finance and Revenue in Islamabad on Wednesday. He said there was no shortfall in external financing and ongoing talks with the United Arab Emirates regarding loan rollovers were progressing as planned.
During the meeting, questions were raised about the duration of a reported loan rollover by the UAE. Finance ministry officials clarified that it was not limited to one month and said discussions were continuing smoothly.
Aurangzeb also said Pakistan plans to issue Panda bonds in the first quarter of the current year, adding that talks on the matter were ongoing. On the National Finance Commission award, he said technical discussions were under way and a formal meeting could be called after several rounds of committee-level talks.
Focus on tax growth and spending
Earlier, the finance minister told the committee that improving the tax-to-GDP ratio remained key for economic progress. Without steady growth in tax collection, he said, it would be difficult to move the economy forward.
Officials briefed the committee on the finance ministry’s budget use for fiscal year 2025-26. Around Rs1.5 billion has been spent so far out of an allocation of Rs4.8 billion, which is about 31 percent. For six development projects, Rs851.58 million was allocated and about Rs551.9 million has been released to date.
The committee asked for a detailed update on project progress, especially those linked to women’s financial inclusion. Officials said more than Rs20 billion has been provided to women through microfinance institutions.
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