Prime Minister Shehbaz Sharif is set to meet with the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, in Dubai. The meeting, requested by Pakistan, comes three weeks before the scheduled review talks for the $1 billion second loan tranche under the IMF’s $7 billion programme. The meeting will take place on the sidelines of the World Governments’ Summit, which the PM is attending with a high-level delegation, including key cabinet members.
This will be the third meeting between PM Sharif and Georgieva in the past 10 months. The reason for the early meeting remains unclear, as both the IMF and the Ministry of Finance have refrained from commenting. The upcoming IMF review talks, scheduled from March 3 to 14 in Islamabad, are crucial for Pakistan’s economic stability. The discussions will focus on Pakistan’s progress under the programme, including maintaining fiscal discipline, raising taxes, and meeting conditions tied to economic reforms.
Also Read: IMF Reports Pakistan Facing Challenging Fiscal Situation
Amidst the loan negotiations, the Pakistani government is facing domestic challenges, including pressure from the real estate sector to lower taxes and inflation concerns among the salaried class. Teachers are also protesting the government’s withdrawal of a 25% income tax rebate. Finance Minister Muhammad Aurangzeb, who is expected to join the meeting after returning from Portugal, has expressed confidence in the talks.
The IMF’s ongoing Governance and Corruption Diagnosis Assessment in Pakistan adds another layer of complexity. A successful review is crucial to avoid setbacks in the programme, with further conditions likely to be imposed based on the IMF’s assessment report.
