Pakistan’s government has initiated consultations with key economic ministries after a high-level review concluded that the current economic structure is failing to attract foreign investment and support long-term growth. Finance Minister Muhammad Aurangzeb has asked ministries to propose reforms and potential IMF concessions to help build a more realistic budget and sustainable growth roadmap.
According to officials, the decision follows an internal assessment that found Pakistan’s economic framework inadequate for boosting exports or drawing sustained foreign capital. The finance minister chaired the first round of discussions on Thursday, directing ministries to submit reform proposals that could guide policy changes while keeping Pakistan engaged with the IMF programme until September 2027.
Officials discussed options to seek relief under the current $7 billion IMF bailout while planning a gradual exit once the programme ends. Concerns were raised over missed tax collection targets and the practice of delaying refunds to inflate revenue figures. Some industrial representatives also warned that levies on captive power plants were hurting the financial health of state-owned gas utilities.
The review highlighted deep structural gaps in key sectors, including textiles, which lacks fully integrated value chains needed for global competitiveness. Government sources noted that fragmented supply chains continue to limit export potential, making it difficult to achieve sustainable growth.
In parallel, Pakistan is deepening economic engagement with Saudi Arabia under the Saudi-Pakistan Economic Cooperation Framework. A 90-day activation plan covering 12 joint working groups in agriculture, IT, mining, tourism, and energy is aimed at identifying reform priorities and attracting investment. Authorities plan to complete the economic assessments by March 2026, ahead of the next IMF programme review due in late February.
Planning Minister Ahsan Iqbal has earlier stated that a permanent exit from the IMF would require doubling exports to $63 billion by 2029, underlining the scale of reforms needed.