The International Monetary Fund (IMF) team is set to visit Pakistan from September 25 to October 8 for the second economic review under the Extended Fund Facility (EFF). According to sources, the delegation will begin with technical-level discussions before moving on to policy-level dialogue.
During their stay, IMF officials will meet representatives from the Ministry of Finance, Ministry of Energy, Ministry of Planning, the State Bank of Pakistan, Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority (OGRA), National Electric Power Regulatory Authority (NEPRA), as well as other key institutions. The delegation will also hold separate consultations with provincial governments in Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.
Sources confirmed that Pakistan has so far achieved the targets required for the release of the third tranche under the EFF program.
The country’s budget deficit has remained within the range set by the IMF, while the current account deficit and non-tax revenues have also stayed aligned with the agreed benchmarks. Moreover, the inflation rate has been recorded below the IMF’s target of 5.1 percent, reflecting some stability in macroeconomic indicators.
However, challenges remain, particularly in tax revenue collection. While Pakistan has nearly met its tax revenue targets, sources attributed minor shortfalls to the impact of severe flooding.
The floods have devastated key crops including rice, maize, and cotton, creating risks to overall economic growth targets. The agricultural losses are expected to slow down growth momentum despite progress in other areas.
Additionally, sources noted that Pakistan’s tax revenue policy board has now been transferred to the Ministry of Finance, a step aimed at strengthening fiscal policy coordination.
If the review is successfully completed, it will pave the way for the IMF Board’s approval of a $1 billion tranche. Under the $7 billion Extended Fund Facility program, Pakistan has already secured over $2 billion through two earlier disbursements. This upcoming installment will be crucial in supporting the country’s external financing needs and stabilizing its economy amid flood-related challenges.
