Karachi hosts technical discussions as mission starts 15-day visit
Karachi: Pakistan and the International Monetary Fund (IMF) began policy-level negotiations on Wednesday under the third review of the $7 billion loan programme, aiming to unlock the fourth tranche.
An IMF review mission arrived in Pakistan for a 15-day visit that will continue until March 11. Initially, officials launched technical-level discussions at the State Bank of Pakistan in Karachi. Subsequently, the delegation will travel to Islamabad for policy-level talks with the Ministry of Finance.
Officials said the IMF team will assess Pakistan’s economic performance for the first half of the current fiscal year, covering July to December. In addition, both sides will evaluate progress on previously agreed targets.
Meanwhile, the government will present its proposed federal budget framework for the next fiscal year. Authorities will also brief the IMF on tax reforms, energy sector developments, monetary policy decisions, foreign exchange reserves, and the broader fiscal framework.
Furthermore, discussions will address governance reforms, anti-corruption initiatives, key institutional appointments, and measures to strengthen the Federal Board of Revenue (FBR). The government plans to share an action plan outlining reforms, including steps related to public officials’ asset declarations.
However, revenue collection remains a concern. The FBR recorded a tax shortfall of Rs329 billion during the first six months of the fiscal year, which later widened to Rs372 billion. Therefore, Islamabad is expected to seek a downward revision of the annual tax target.
Despite these challenges, officials insist that the loan programme remains on track and express confidence about completing the review successfully.
