Finance Minister Muhammad Aurangzeb announced on Monday that an International Monetary Fund (IMF) delegation will visit Pakistan in early March to conduct a biannual review of the country’s $7 billion bailout program.
Pakistan and the IMF had reached a three-year, $7 billion agreement in July, aimed at strengthening macroeconomic stability and fostering conditions for sustained, inclusive, and resilient growth.
The 37-month Extended Fund Facility (EFF) program includes six periodic assessments, with the disbursement of the next $1 billion tranche contingent upon a successful review of Pakistan’s economic performance.
A key requirement for stabilizing the economy and managing debt under this agreement is increasing the tax-to-GDP ratio. In 2024, salaried individuals became the third-largest contributors to income tax revenue, following banks and the petroleum sector, surpassing textile exporters.
While speaking to reporters, Aurangzeb stated that the IMF team will evaluate the federal government’s progress on key reforms.
He emphasized that reforms in the Federal Board of Revenue (FBR), particularly in people, processes, and technology, will continue with determination. He also highlighted the importance of restructuring state-owned enterprises (SOEs) and advancing the privatization agenda.
Aurangzeb further noted that Pakistan aims to incentivize exports while strengthening border controls. He pointed out that, for the first time, sugar was exported instead of being smuggled into Afghanistan.
“We need every single dollar for our own economy,” he asserted.
Additionally, a separate IMF technical mission has arrived in Islamabad at Pakistan’s request to discuss over $1 billion in additional funding for climate resilience.
Pakistan was identified as the most climate-vulnerable country in 2022 after experiencing catastrophic monsoon floods that claimed over 1,700 lives, devastated agricultural lands, impacted 33 million people, and caused financial losses estimated at $33 billion.
In October, the government formally requested $1 billion from the IMF’s Resilience and Sustainability Trust (RST) to support climate adaptation efforts, a request Aurangzeb had disclosed during his visit to Washington.
