Islamabad, Mar 13, 2025: Pakistan and the International Monetary Fund (IMF) are currently engaged in the first economic review of the country’s $7 billion bailout program.
The discussions include the release of the next $1 billion loan installment, with a primary focus on evaluating the current fiscal year’s economic performance and setting objectives for the upcoming fiscal period.
The IMF has underscored the necessity of boosting revenue and curbing expenditures.
The government has proposed a tax revenue target exceeding Rs. 15 trillion for the next fiscal year, with expectations that the tax-to-GDP ratio will increase to 13%.
Additionally, non-tax revenue is projected to reach Rs. 2.745 trillion in the forthcoming fiscal year.
According to the Ministry of Finance, sources stated that they anticipate economic growth to exceed 4% in the next fiscal period, while they expect the current year’s growth to remain at 3.5%.
Experts forecast that inflation will remain in single digits next year, offering some economic relief to the public.
Furthermore, analysts project that Pakistan will require over $20 billion in external financing in the upcoming fiscal cycle, with allied nations likely rolling over their deposits once more.
During the negotiations, the government briefed the IMF on cost-cutting initiatives designed to alleviate the financial burden on the national treasury.
Read More:
Pakistan Grants Oman Access to Gwadar & Karachi Ports
As part of these austerity measures, authorities have permanently eliminated 150,000 unoccupied positions across public institutions.
Additionally, the government reassured the IMF that it would take further measures to streamline expenses.
The government will offer employees from various departments voluntary retirement packages and provide financial settlements through a golden handshake scheme.
Moreover, the government conveyed its commitment to amending the Civil Servants Act 1973 to facilitate the removal of redundant positions, ensuring a more efficient administrative framework.
