Islamabad (Web Desk) – A review mission of the International Monetary Fund (IMF) arrived in Pakistan on Tuesday for a 15-day visit to assess the country’s economic performance under its ongoing loan programme.
The mission will conduct negotiations in two phases, beginning in Karachi before moving to Islamabad. The discussions will continue until March 11 and focus on Pakistan’s performance during the first half of the current fiscal year, from July to December.
The visit comes at a critical juncture for Pakistan’s economy, as authorities seek to maintain fiscal discipline under the IMF-backed reform agenda while preparing the federal budget for the next fiscal year.
Revenue Shortfall Under Scrutiny
Officials said the IMF delegation will review key macroeconomic indicators, including fiscal targets, revenue collection and structural reforms. While most programme benchmarks have reportedly been met, tax collection remains a major concern.
The Federal Board of Revenue (FBR) recorded a revenue shortfall of Rs329 billion in the first six months of the fiscal year, widening to Rs372 billion over seven months. The government is expected to brief the IMF on corrective measures and may seek a downward revision of the annual tax target.
Discussions are also likely to cover strengthening the FBR’s anti-corruption mechanisms and improving transparency in public officials’ asset declarations as part of governance reforms.
Fiscal Performance and Reform Agenda
According to finance ministry sources, Pakistan has achieved a primary fiscal surplus of approximately 1.3% of GDP, while provinces collectively posted a cash surplus of Rs1,180 billion. Provincial tax targets were reportedly met, and the current account remained in surplus during the review period.
Foreign exchange reserves stayed above programme thresholds, and large-scale manufacturing grew by around 6% between July and November, reflecting signs of economic stabilization despite challenges, including the lingering impact of recent floods.
The performance of the National Accountability Bureau (NAB) and appointment procedures in key institutions are also expected to come under review as part of broader governance reforms.
$8.4 Billion IMF Programme
The ongoing review is part of Pakistan’s $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF), bringing the total programme size to $8.4 billion. So far, Pakistan has received approximately $3.3 billion under both arrangements.
A successful review could pave the way for the next tranche of funding, providing critical financial support as Pakistan works to stabilize its economy, manage inflation, and sustain external balances.
