ISLAMABAD, February 5, 2026: Pakistan’s government has assured there is no external financing gap ahead of the arrival of an International Monetary Fund (IMF) mission later this month for the third review under the ongoing $7 billion Extended Fund Facility (EFF). Finance Minister Muhammad Aurangzeb emphasized that ongoing discussions with the United Arab Emirates (UAE) regarding the rollover of a $3 billion loan are on track.
Speaking after the Senate Standing Committee on Finance and Revenue meeting on February 4, 2026, Aurangzeb stated that Pakistan has shared a clear external financing plan with the IMF and reaffirmed the government’s commitment to it. When questioned about the UAE loan rollover, he and the finance secretary directed the matter to the Ministry of Foreign Affairs, noting that bilateral talks are proceeding smoothly.
The minister also confirmed that Panda bonds will be issued in the first quarter of the year and that work on the National Finance Commission (NFC) Award is ongoing, with sub-group meetings paving the way for the next NFC session. Aurangzeb highlighted the need for fiscal discipline and sustainable tax-to-GDP growth, stressing that corruption, leakages, and enforcement challenges remain but that reforms are beginning to show results.
Federal Board of Revenue (FBR) Chairman Rashid Mahmood Langrial informed the committee that Rs70 billion has been collected under the Super Tax, with a total of Rs217 billion expected to be recovered. He indicated that influential individuals have been obstructing enforcement, suggesting an in-camera session to disclose names.
State Bank of Pakistan (SBP) Governor Jameel Ahmad briefed the committee on new banknote designs from Rs10 to Rs5,000, incorporating 15 advanced security features. He clarified there is no plan to withdraw the Rs5,000 note. The committee also directed the SBP to prevent commercial banks from charging customers for SMS alert services, terming the practice unfair.
Senators, including Sherry Rehman, stressed the importance of addressing unemployment and ensuring a fair, sustainable revenue model while economic stability improves under the current government reforms.
This consolidated briefing reflects Pakistan’s ongoing efforts to manage external financing, enhance fiscal discipline, and modernize financial systems ahead of the IMF review.