Finance Ministry Clarifies Misleading Report on Pakistan’s IMF Program
ISLAMABAD, (APP - UrduPoint / Pakistan Point News - 22nd Sep, 2026) The Ministry of Finance on Tuesday strongly rejected a report appearing in a section of media, clarifying that Pakistan’s program with the International Monetary Fund (IMF) was a whole-of-government initiative and not a Finance Division program.
It stated: "IMF program is a whole-of-government program, not a Finance Division program," according to a news release.
Response to Media Report
In response to a news report published in The Express Tribune on September 22, titled “Iqbal seeks role in IMF talks,” the ministry addressed certain assertions and interpretations regarding its involvement with the IMF and the government’s economic stabilization program:
- The ministry emphasized that various federal and provincial institutions are responsible for reforms and commitments within their respective mandates.
- It corrected the misconception that the Ministry of Finance has "tight control" over program design and negotiations, highlighting the institutional arrangements underlying Pakistan’s IMF program.
Reforms and Commitments
The IMF's Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) programs encompass reforms and commitments across multiple sectors, including:
- Finance Division: Fiscal policy and macroeconomic management.
- Planning Commission/Ministry of Planning: Economic planning and development strategies.
- Ministry of Energy: Energy sector reforms and efficiency.
- Provincial Governments: Regional and provincial economic policies.
- Federal Board of Revenue (FBR): Tax mobilization and base expansion.
- State Bank of Pakistan (SBP): Monetary policy and financial stability.
Program Scope
The IMF program extends beyond fiscal targets to encompass:
- Growth-enhancing structural reforms.
- Social protection measures.
- Governance improvements.
- Climate resilience initiatives.
- Reduction of economic distortions.
IMF Staff Report Insights
The latest IMF staff report emphasized discussions on accelerating reforms to support stronger growth while protecting vulnerable households.
Petroleum Development Levy (PDL)
The ministry clarified that characterizing the PDL as the "central point" of the IMF program is misleading. The program's fiscal strategy focuses on:
- FBR revenue mobilization and performance enhancement.
- Expansion of the tax base and provincial taxation.
- Expenditure rationalization.
While the IMF documents contain measures regarding petroleum pricing and levies, including the PDL, it does not prescribe a single permanent headline rate.