Pakistan has reaffirmed its commitment to economic reforms and targeted subsidies for low-income families during a meeting between Finance Minister Muhammad Aurangzeb and the managing director of the International Monetary Fund (IMF) in Bangkok on Wednesday.

The meeting took place on the sidelines of the 2026 World Bank Group–IMF Annual Meetings, during a session focused on the Middle East, North Africa, Afghanistan and Pakistan (MENAP) region.

Aurangzeb stressed that government subsidies should remain targeted, time-bound and budget-neutral. He said this approach was necessary to support vulnerable households while protecting social cohesion and maintaining fiscal discipline.

The government’s position signals an emphasis on providing financial relief to those who need it most rather than introducing broad-based subsidies that could place additional pressure on public finances.

Targeted subsidies are designed to direct government assistance towards specific groups, particularly households with limited incomes. Budget-neutral measures aim to avoid increasing the overall budget deficit, while time-bound support limits the duration of financial assistance.

During the meeting, Aurangzeb also highlighted Pakistan’s recent economic indicators, including a fiscal deficit reported at a 22-year low and three consecutive years of primary budget surpluses. He cited economic growth of 3.7 percent as another sign of progress.

The finance minister further pointed to foreign exchange reserves that he described as being at a historic high and sufficient to cover three months of imports. Such reserves are important for meeting external payment obligations and helping the country manage economic uncertainty.

Aurangzeb also referred to sovereign credit rating upgrades, Pakistan’s September Eurobond issuance and the IMF staff-level agreement reached on October 7 as developments supporting the country’s economic reform efforts.

These indicators featured in Pakistan’s broader message about stabilising the economy and strengthening its capacity to withstand external pressures. However, their long-term impact will depend on continued policy implementation, revenue performance and the country’s ability to maintain financial stability.

The discussion also covered wider regional and global economic challenges. Aurangzeb called for greater diversification of energy sources and trade routes, alongside deeper regional integration and increased investment in logistics and food systems.

He highlighted the importance of strengthening supply chains and improving economic cooperation as countries respond to disruptions and climate-related risks. More diversified trade and energy arrangements can help reduce reliance on limited sources and routes.

The finance minister also reaffirmed Pakistan’s support for multilateral cooperation and expressed the country’s willingness to contribute actively to regional initiatives.

Pakistan’s commitment to targeted subsidies comes amid the continuing challenge of balancing fiscal discipline with the needs of households facing economic pressure. While limiting subsidies can help contain government expenditure, the effectiveness of targeted support depends on whether eligible families can access assistance when they need it.

For Pakistan, the challenge will be to maintain progress on economic reforms while ensuring that vulnerable communities are not left without adequate support. The government’s approach, as outlined in Bangkok, seeks to balance social protection with the IMF’s emphasis on sustainable public finances.

Further policy measures and implementation details will determine how this commitment translates into practical assistance for low-income households in the months ahead.