Pakistan pledges 2% of GDP primary surplus for FY2027 as IMF team reviews reforms and economic outlook
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The International Monetary Fund (IMF) mission in Pakistan wrapped up its discussions with finance ministry officials on Wednesday, focusing on the country’s economic developments, fiscal plans for the next fiscal year (FY2027-28), and progress on reforms under IMF-supported programs.
Authorities in Islamabad have committed to achieving a primary surplus of 2% of gross domestic product (GDP) in fiscal year 2027. A primary surplus occurs when government revenues exceed expenditures, excluding interest payments on debt, signaling Pakistan’s pledge to fiscal discipline.
The IMF team, led by advisor Iva Petrova, visited Pakistan from May 13–20, 2026, assessing the impact of disruptions linked to the ongoing conflict in the Middle East and reviewing progress on economic reforms.
Earlier in May, the IMF approved around $1.32 billion in fresh funding for Pakistan, which is currently under a $7 billion IMF program.
The State Bank of Pakistan (SBP) has committed to maintaining an “appropriately tight monetary policy stance” to anchor inflation expectations and closely monitor potential second-round effects from rising energy prices, the IMF noted.
