Pakistan and the International Monetary Fund (IMF) have commenced discussions for the first review of the $7 billion Extended Fund Facility (EFF), which was secured last year. The IMF delegation, led by Nathan Porter, met with Pakistan’s Finance Minister, Muhammad Aurangzeb, in Islamabad to assess the country’s economic progress and fiscal policies.
During the meeting, the Finance Minister emphasized Pakistan’s commitment to fiscal discipline and structural reforms aimed at stabilizing the economy. He briefed the IMF team on the country’s macroeconomic situation, revenue collection efforts, and ongoing reforms, stressing the government’s determination to meet the conditions of the loan program. The IMF will continue its review to ensure Pakistan adheres to the program’s requirements.
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The talks covered Pakistan’s economic performance in the first half of the fiscal year, focusing on key indicators like the fiscal deficit, primary balance, and revenue collection. Pakistan’s efforts to advance climate-related fiscal strategies under its Green Initiative were also highlighted during the discussions.
As Pakistan seeks to secure the next tranche of the loan, the IMF is expected to present its recommendations for the upcoming federal budget. Ongoing negotiations also include measures to tackle tax evasion in the real estate sector, with authorities planning stringent actions to ensure transparency and accountability.
The IMF review is vital for Pakistan to unlock further disbursements and stabilize its foreign exchange reserves as part of the broader economic recovery plan.
