An IMF delegation has arrived in Pakistan for discussions about a new loan. According to the Finance Ministry, the team will review Pakistan's economic performance and meet with relevant government officials.
The government has already briefed the IMF team on its economic progress and goals for the first quarter of the fiscal year. Key topics include tax collection, where Pakistan achieved 96.6% of its target from July to September.
The IMF delegation is expected to hold meetings with the Minister of State for Finance, the FBR Chairman, and State Bank officials to discuss the country's economic situation and future strategies.
During the visit, Pakistan and the IMF will also explore options for concessional loans to support climate change projects. Talks will cover the provincial budgets and how much of them is allocated for climate change initiatives.
Sources indicate that the IMF team will review the current loan program and provide an initial assessment of Pakistan's tax revenue and any gaps from July to September. Pakistan has requested an additional $2 billion to address climate change impacts after an initial financing request wasn’t immediately approved.
In September, Pakistan also sought an additional $1.5 billion from the IMF for climate resilience projects to support economic stability and sustainable development.
The government has committed to policies aimed at fiscal sustainability, including passing the FY24 budget, which targets a primary surplus of 0.4% of GDP. Other commitments include maintaining a market-based exchange rate and reducing inflation.
Notably, on September 25, the IMF approved Pakistan's 37-month Extended Fund Facility, amounting to $7 billion.
