ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Tuesday stressed the importance of an “early and substantive review” of the International Monetary Fund’s (IMF) surcharges on loans, citing global economic pressures stemming from the ongoing Iran war.
The IMF charges countries regular interest, plus surcharges for loans above a certain threshold or duration, and commitment fees for precautionary arrangements. The IMF approved a 37-month, $7 billion loan program for Pakistan in September 2024.
Pakistan has relied on successive IMF loans over the years to keep its fragile economy afloat. The ongoing Iran war has driven global oil prices higher, with supply shocks prompting countries such as Pakistan to take emergency measures to conserve energy.
Aurangzeb, who is in Washington to attend the IMF-World Bank spring meetings 2026, participated in the G-24 finance ministers and central bank governors’ meeting.
“The finance minister also underlined the importance of an early and substantive review of IMF surcharges, highlighting its significance for developing economies,” Pakistan’s finance ministry said in a statement.
The Pakistani finance minister noted that the global economy continues to face significant strain from successive shocks, most recently the geopolitical tensions in the Middle East.
He said the war on Iran has led to a “major supply shock” affecting energy markets, fertilizers and broader financial conditions.
Aurangzeb emphasized Pakistan’s support for the IMF’s ongoing review of its program design and conditionality, stressing the need to preserve strong macroeconomic stability anchors.
The review, which will go on till Apr. 30, aims to ensure that IMF-supported programs help member countries restore medium-term external viability and build resilience against an uncertain and evolving international context by resolving balance of payments imbalances, rebuilding policy space, and strengthening policy frameworks.
Aurangzeb stressed the need to deepen collaboration with the World Bank in job-intensive investment, infrastructure development and innovative financing solutions.
“Reaffirming Pakistan’s commitment to resilience, inclusion, and shared prosperity, the finance minister called for enhanced global cooperation to effectively address emerging economic challenges,” the statement added.
