Islamabad, Mar 3, 2025: The government is confident about securing a positive outcome in the International Monetary Fund (IMF) review, which will determine the release of a $1.1 billion installment under the $7 billion Extended Fund Facility (EFF).
A delegation from the IMF, led by Nathan Porter, will engage in discussions with Pakistani officials from March 3 to 14 to assess the country’s fiscal performance, revenue collection, and structural reforms.
Government representatives acknowledged some technical setbacks in meeting the IMF’s conditions but assured that all outstanding targets have now been addressed.
The assessment focuses on the first half of the fiscal year (July–December 2024), during which a revenue shortfall was recorded. However, authorities remain optimistic, citing strong earnings from non-tax sources.
Such as central bank profits, petroleum levies, and telecom revenues, which have helped bridge the gap. Despite weaker-than-expected growth in cotton and wheat production and sluggish industrial performance.
The government has taken measures to extend the repayment timeline of its debt to over 39 months a major concern raised by the IMF. Officials emphasized that shifting to long-term borrowing instruments has bolstered financial stability.
Authorities are also preparing for further tax base expansion, targeting sectors such as retail, real estate, and agricultural income, in accordance with IMF guidelines.
In addition, progress is being made on structural reforms, including an amendment to the Civil Servants Act, 1973, which will mandate government officials (BPS 17-22) to digitally declare their assets, including foreign holdings.
The Ministry of Planning has also introduced new criteria for Public Sector Development Programme (PSDP) projects, prioritizing strategic infrastructure, foreign-funded initiatives, and climate-resilient developments a step aligned with IMF’s directives for fiscal discipline.
Having met 16 out of 17 structural benchmarks, most within the stipulated deadlines, the government anticipates a smooth review process. If the assessment concludes successfully, the $1.1 billion tranche is expected to be disbursed within three weeks.
