An International Monetary Fund (IMF) delegation is set to arrive in Islamabad on Monday for a biannual review of Pakistan’s $7 billion bailout program.
In July, Pakistan and the IMF agreed on a three-year financial assistance package aimed at ensuring macroeconomic stability and promoting sustainable economic growth. The Extended Fund Facility, spanning 37 months, includes six periodic reviews, with the disbursement of the next $1 billion tranche contingent on the upcoming performance evaluation.
A key objective of the loan program is to enhance Pakistan’s tax-to-GDP ratio, which is crucial for economic stabilization and debt management. In 2024, the salaried class became the third-largest income tax contributor, following the banking and petroleum sectors, while surpassing textile exporters.
The review process, scheduled to continue until March 15, will be conducted in two phases: the first focusing on technical discussions and the second on policy-level negotiations.
The nine-member IMF team, led by Nathan Porter, will remain in Pakistan for about two weeks. Discussions will also cover budgetary recommendations for the fiscal year 2025-26. If the review is successful, sources indicate that some relief measures for the salaried class could be introduced.
The IMF delegation is set to meet officials from key institutions, including the Ministry of Finance, Ministry of Energy, Ministry of Planning, and the State Bank of Pakistan. Further discussions will be held with the Federal Board of Revenue, Oil and Gas Regulatory Authority, and National Electric Power Regulatory Authority to assess economic challenges and necessary reforms.
Last month, the finance minister confirmed that the IMF mission would evaluate Pakistan’s progress on key reform commitments. He reiterated the government’s dedication to modernizing the Federal Board of Revenue’s technological infrastructure and emphasized the significance of restructuring state-owned enterprises and advancing privatization efforts.
The minister also outlined strategies to boost exports while enforcing stricter border controls. He noted that, for the first time, sugar exports were being conducted through legal channels instead of being smuggled into Afghanistan. “Every dollar matters for our economy,” he stated.
