IMF to conduct crucial economic review in Pakistan on Sept 25

ISLAMABAD: A delegation from the IMF will arrive in Pakistan on September 25 to conduct the second economic review under the Extended Fund Facility (EFF). The visit, which will continue until October 8, is seen as a crucial step toward unlocking the next $1 billion tranche of the $7 billion loan program.

According to official sources, the mission will begin with technical-level talks followed by policy discussions. The team will meet key government institutions, including the Ministries of Finance, Energy, and Planning, as well as the State Bank of Pakistan, Federal Board of Revenue, Oil and Gas Regulatory Authority, and National Electric Power Regulatory Authority. Separate consultations are also planned with the provincial governments of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.

Sources noted that Pakistan has largely met the agreed fiscal and current account targets, with inflation remaining below the 5.1% ceiling. However, tax revenues have slightly lagged behind expectations due to widespread flooding, which damaged major crops such as rice, maize, and cotton. Officials warn that these agricultural losses could affect overall economic growth.

The government has also shifted the tax revenue policy board to the finance ministry to streamline decision-making. A positive outcome from the IMF review would pave the way for the release of the third installment, adding to the over $2 billion Pakistan has already received under the program.

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