ISLAMABAD (Web Desk) – Pakistan and the International Monetary Fund (IMF) have formally launched a critical round of economic review negotiations in Islamabad, marking a significant stage in ongoing discussions over fiscal reforms, revenue performance and macroeconomic stability.
According to official sources, an introductory session between Pakistan’s economic team and the visiting IMF delegation began on Friday. Officials are briefing the mission on recent developments in the country’s economic indicators, fiscal consolidation efforts and structural reforms.
The IMF delegation is led by Mission Chief Eva Petrova and expert Maher Binnici, while Pakistan’s side is headed by Finance Minister Muhammad Aurangzeb. Senior officials, including the Governor of the State Bank of Pakistan and the Finance Secretary, are also participating in the talks.
The negotiations, which began with an initial round in Karachi on February 25, are scheduled to continue until next week.
During the briefing, Aurangzeb said macroeconomic and financial stability were strengthening, citing improved fiscal discipline and stabilised foreign exchange reserves. He noted that inflation had moderated and the economy was gradually shifting toward sustainable, export-led growth.
However, revenue collection remains a key concern. The IMF has sought detailed clarification regarding a reported shortfall of Rs457 billion in tax revenues during the first eight months of the fiscal year. The Federal Board of Revenue (FBR) is expected to present a comprehensive report outlining the reasons behind reduced collections in sales tax, income tax and other revenue streams.
Officials said the review will also assess progress on power sector reforms, including implementation of circular debt reduction targets and performance of electricity distribution companies. Governance reforms and anti-corruption measures are likewise part of the agenda.
The outcome of the review is seen as crucial for Pakistan’s ongoing IMF programme and broader economic outlook, particularly as the country seeks to maintain financial stability amid global economic uncertainty.
