Pakistan’s Ministry of Planning, Development and Special Initiatives has formally requested Prime Minister Shehbaz Sharif to include it in the core team for upcoming negotiations with the International Monetary Fund (IMF). This significant move, confirmed by Planning Minister Ahsan Iqbal on September 22, 2026, aims to reassert the ministry’s influence in economic policymaking, particularly as critical IMF review mission talks are scheduled for Islamabad this week.
By SarmayaNext Macroeconomics Desk • ✓ Fact-Checked • Published September 2026
Planning Ministry Seeks Central Role in Critical IMF Negotiations
Pakistan’s Planning Ministry has formally requested Prime Minister Shehbaz Sharif to join the core team for upcoming IMF negotiations, alongside the Finance Division. Planning Minister Ahsan Iqbal stated this move aims to restore the ministry’s historical role in economic policymaking, arguing that IMF discussions cover areas like growth, inflation, and poverty, which fall within its domain.
The Ministry of Planning, Development and Special Initiatives has formally written to Prime Minister Shehbaz Sharif, requesting its inclusion in the core team for upcoming negotiations with the International Monetary Fund (IMF). Planning Minister Ahsan Iqbal emphasized that discussions with the IMF frequently cover crucial areas such as economic growth, inflation, and poverty, which are central to the Planning Ministry’s mandate. This request comes ahead of an IMF review mission’s talks with Pakistani authorities in Islamabad this week, where the Pakistani delegation will be led by the Finance Minister, with Finance Secretary Imdad Ullah Bosal heading technical discussions.
Minister Iqbal highlighted that this initiative represents an effort to restore a role the Planning Ministry previously held in economic policymaking. He noted that the Planning Commission played a central role in shaping economic policy during the 1960s, 1970s, and 1980s, a period when the Finance Division’s influence was less pronounced, before its ascendancy from the 1990s onward. The minister also presented the September 2026 Monthly Development Update (MDU), outlining the government’s economic priorities and recent performance metrics.
Pakistan’s Key Economic Indicators (July-August FY2026-27)
| Indicator | Value (July-August FY2026-27) | Change vs. Last Year |
|---|---|---|
| Goods Exports | $5.4 billion | N/A |
| Goods & Services Exports | $7.3 billion | 9.2% growth |
| Services Exports | N/A | 29% expansion |
| ICT Exports | $811 million | N/A |
| Current Account Deficit | $543 million | 36% improvement |
| Remittances | $7.3 billion | N/A |
| Net FDI | $494 million | 24% higher |
| PSDP Utilization | Rs19.65 billion | N/A |
| Housing Finance Approvals (PM Apna Ghar) | Rs313 billion+ | 117% increase |
Strategic Implications for Pakistan’s Economic Policy and IMF Engagement
The Planning Ministry’s bid for a more prominent role in IMF negotiations signals a potential shift in Pakistan’s economic governance structure. By advocating for its inclusion, the ministry aims to ensure that long-term development goals, poverty reduction strategies, and sustainable growth initiatives are more directly integrated into the country’s fiscal and monetary policy discussions with the IMF. This could lead to a more holistic approach to economic reforms, moving beyond purely financial stabilization to encompass broader socio-economic development objectives.
Ahsan Iqbal’s economic outlook, presented alongside the request, projects inflation to return to single digits, contingent on achieving peace in the Gulf region and an easing of recent price increases. He criticized the previous government’s reported 6 percent growth rate, attributing it to consumption and import-driven expansion that depleted foreign exchange reserves. In contrast, the current government aims for growth fueled by exports and private sector investment. The Monthly Development Outlook underscores priorities such as improving public investment, accelerating priority projects, strengthening implementation capacity, and fostering private investment, productivity, technology, human capital, and climate resilience for sustainable growth.
Recent economic indicators presented by Minister Iqbal for July-August FY2026-27 reflect an improving external position. Goods exports reached $5.4 billion, with total goods and services exports rising to $7.3 billion, a 9.2 percent increase year-on-year. Services exports expanded by 29 percent, and ICT exports hit $811 million. The current account deficit improved by 36 percent to $543 million, while remittances remained robust at $7.3 billion. Net foreign direct investment (FDI) also saw a significant increase, rising 24 percent to $494 million during the first two months of the fiscal year.
The IMF’s ongoing engagement with Pakistan extends to detailed discussions on the federal budget for FY2026-27. Earlier technical missions, which concluded by May 20, focused on budget formulation, tax revenue measures, and broader fiscal reforms. The IMF has reportedly expressed concerns over suspicious financial transactions, urging stronger action against money laundering and improved regulatory enforcement. These discussions also cover energy sector reforms, privatization progress, and strengthening overall financial discipline and governance, with Pakistan considering a tax revenue target of over Rs15 trillion for the next fiscal year. The Finance Minister and State Bank Governor are also set to sign a Letter of Intent for the release of the third tranche of $1 billion and a $200 million installment under the Resilient Sustainability Facility, likely in early December 2025.
Key Takeaways
- The Planning Ministry seeks a formal role in core IMF negotiations, aiming to integrate development goals with fiscal policy.
- Minister Ahsan Iqbal projects single-digit inflation if regional peace holds and advocates for export and private investment-led growth.
- Pakistan’s external position shows improvement with increased exports, remittances, and FDI, alongside a reduced current account deficit.
- IMF discussions continue to focus on budget formulation, tax reforms, financial governance, and addressing money laundering concerns.
The Insider Take
The Planning Ministry’s push to rejoin the IMF negotiation table reflects a strategic attempt to broaden the scope of Pakistan’s economic dialogue beyond immediate fiscal adjustments. By emphasizing long-term growth, poverty, and development, the ministry aims to ensure that IMF-mandated reforms are not just about austerity but also about building sustainable economic foundations. This internal realignment could lead to more balanced policy outcomes, but also potentially introduce additional layers of coordination within the government’s economic team, requiring strong leadership from the Prime Minister to maintain a unified front during critical international negotiations.
Frequently Asked Questions About Planning Ministry asks PM
Why is Pakistan’s Planning Ministry asking to join IMF talks?
The Planning Ministry has requested inclusion in core IMF negotiations to reassert its role in economic policymaking. Minister Ahsan Iqbal argues that IMF discussions on economic growth, inflation, and poverty fall directly within the ministry’s domain, aiming for a more comprehensive approach to national development and fiscal strategy.
What is the current status of IMF negotiations with Pakistan?
An IMF review mission is scheduled for talks in Islamabad this week, with the Pakistani delegation led by the Finance Minister. Earlier technical missions for the FY2026-27 budget concluded by May 20, focusing on fiscal reforms, tax targets, and financial governance, with further tranches expected in late 2025.
How does this request impact Pakistan’s economic strategy?
The Planning Ministry’s involvement could lead to a broader economic strategy that integrates long-term development goals with immediate fiscal adjustments. This shift emphasizes export and private investment-led growth, public investment, and climate resilience, moving away from consumption-driven growth that previously strained foreign exchange reserves.
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