ISLAMABAD: An International Monetary Fund (IMF) review mission is set to visit Pakistan in the first week of next month to assess progress under the $7 billion Extended Fund Facility (EFF), The News reported on Wednesday.
The review is critical for Pakistan, as the government may need to request waivers for unfulfilled conditions. Prime Minister Shehbaz Sharif’s administration secured IMF Executive Board approval for the loan program in September 2024, leading to a $1.02 billion disbursement.
During the visit, Pakistan must also align with IMF officials on key aspects of the 2025-26 budget. Failure to reach a consensus could result in the review’s completion being contingent on parliamentary approval of the budget. As per the agreement, the first review and the release of a $1 billion tranche by the IMF Executive Board are scheduled for April 2025.
Pakistan received $4.5 billion in foreign loans during the first seven months (July–January) of FY 2024-25, compared to $6.7 billion in the same period last year. With the IMF loan included, total foreign inflows reached $5.5 billion—still falling short of the projected $19 billion for the fiscal year.
The IMF mission’s arrival on March 4 coincides with a shift in Pakistan’s current account, which posted a $420 million deficit in January 2025 after a surplus in previous months. A senior finance ministry official confirmed the visit, stating, “Yes, the IMF review mission will be in Islamabad in the first week of March.”
Sources suggest Pakistan may need a waiver for missing the deadline to approve the Agriculture Income Tax (AIT). Although all four provincial assemblies endorsed it, the deadline was not met. Legislation on the Wealth Fund and Asset Declaration Scheme also remains incomplete, while the Tajir Dost Scheme (TDS) fell short of expectations. The Federal Board of Revenue (FBR), however, reported an increase in retailer tax filings.
Foreign Loan Disbursements
Pakistan secured $4.58 billion in foreign loans in the first seven months of FY 2024-25.
- Multilateral creditors provided $2.32 billion, with the Asian Development Bank (ADB) leading at $1.04 billion.
- China’s commercial bank disbursed $306 million, while the AIIB, EIB, and IsDB contributed smaller amounts.
- The World Bank’s IDA and IBRD provided $573.8 million and $201.5 million, respectively.
- Bilateral creditors disbursed $329.1 million, with China ($99.17 million), France ($102.5 million), and Germany ($26.09 million) among the top contributors.
Pakistan has yet to issue an international bond despite projecting $1 billion in inflows. However, the government secured a $500 million commercial loan and raised $1.126 billion through the Naya Pakistan Certificate in the first seven months of the fiscal year.
