The second edition of the annual AlUla conference was launched by the Saudi Arabia’s Ministry of Finance and the International Monetary Fund (IMF) on Sunday. “Pakistan’s fiscal strategy has been shaped by a history of boom-and-bust cycles, persistent structural deficits, high debt levels, and limited fiscal space,” he said, stressing that it has been critical to carefully safeguard the fiscal progress achieved over the past two to three years. Recalling the catastrophic floods of 2022, he noted that Pakistan was forced to make an immediate international appeal even for rescue and relief operations. In contrast, he said, the country was able to mobilize its own resources despite limited fiscal space during the large-scale floods affecting multiple provinces and river systems this year, demonstrating the practical value of rebuilding fiscal buffers to absorb exogenous shocks. “Continued fiscal discipline would further ease debt pressures and help create additional fiscal space.”

Source: The Patriot February 10, 2026 15:15 UTC