$1.2 Billion IMF Tranche Linked to Review Outcome
The International Monetary Fund (IMF) has asked Pakistan to provide a progress report on the National Finance Commission (NFC) as part of its ongoing economic review under the Extended Fund Facility (EFF), sources confirmed on Tuesday.
Discussions between the IMF and Pakistan have focused on key fiscal issues, including the fair distribution of resources between the federal and provincial governments. Pakistan has reportedly assured the IMF that an NFC meeting will be convened soon in consultation with all provinces.
A successful outcome of the review may result in Pakistan receiving the next IMF tranche, estimated at $1.2 billion.
IMF Emphasizes Education, Health and Anti-Money Laundering Measures
During the review, the IMF stressed that development budgets for health and education must not face any funding cuts. It also called for the urgent completion of labour force surveys, household income assessments, and the Pakistan Social and Living Standards Measurement (PSLM) survey.
The economic impact of recent floods was thoroughly discussed, with focus on fiscal recovery and long-term resilience planning.
The IMF also raised questions about trade-based money laundering, seeking stronger risk-based monitoring mechanisms. Pakistan provided updates on its e-PADS procurement system, external audit reports, and beneficial ownership registry.
Discussions also included regulatory oversight of non-financial professions, which the IMF considers critical in combating illicit financial flows.
