Govt eyes next IMF tranche as review wraps up – Pakistan

Revenue additional revenue measures have not been implemented. Financial targets have to be maintained through cost control
• MEFP is still being finalized before staff -level agreement
• IMF’s Executive Board approval is expected by early next month

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) on Friday ended the first two -year review of the $ 7 billion expansion fund facility (EFF) on a positive note, imposing measures without any additional revenue.

Instead, the government pledged to maintain financial goals through the cost control, especially through the development program.

However, official sources have confirmed that the draft of the Memorandum of Economic and Financial Policy (MEFP) is still being finalized before the staff level agreement (SLA) official announcement. This will be the approval of the IMF’s Executive Board for the supply of about $ 1.1 billion by earlier next month.

Therefore, the two sides remained silent at the end of the talks, though Finance Minister Mohammed Aurangzeb requested the IMF to issue a statement in the evening during a wrap meeting on Friday morning.

However, an official attending the meeting said that the time difference and the mission schedule had delayed its issuance. “There is no residual problem,” he said.

Officials said the most difficult aspect of the two -week engagement was related to gas rates for industrial captive power plants, but a resolution reached a resolution to satisfy the IMF delegation, led by the mission chief Nathan Porter.

The approval of the law was also considered an important step for introducing agriculture income tax through all four provincial assemblies, and both parties agreed that much need to be done on the ground for effective recovery that began next year’s budget. The two sides will be busy in the next two months to deal with technical and procedure hiccups in aligning four provinces.

The revised macroeconomic indicators, especially GDP growth estimates, estimates more than 600 billion in federal tax collection estimates. The original budget projection of Rs 1.29 trillion is now adjusted to 1.23TR.

Officials said that the mission of the IMF staff appreciated the overall performance on the benchmarks and the goals, but not without emphasizing a better reservoir than the retail and wholesale sectors, where authorities have yet to struggle to meet the targets.

The fund team demanded better collection of property from the unmanned sectors. The Federal Board of Revenue (FBR) reaffirmed its proposal to facilitate tax on real estate sector for better recovery. The two sides can discuss it further in the run -up in next year’s budget.

The second quarter estimates for the GDP have resulted in a revision of the economy below, resulting in the estimation of this year in the budget 2024-25 that it contains about 1116TR about 124TRTR. Less inflation and economic growth were considered to be a legitimate factory for reduction of tariffs, but it is still in the goals of GDP ratio.

Informed sources said that both sides will practice practically to finalize the MEFP and SLA, and then for next year’s budget consultation.

Sources highlight that for the first time compared to past program studies, the power sector has also met its goals on the back of high base tariffs, low interest rates, stable currency, etc., though technical losses and inadequate recovery have disturbed the IMF mission.

The IMF also emphasized on improving the track and trace system in the sectors and the increase in the implementation of the Point of Cell (POS) system in commercial activities. It also called for strong efforts to privatize the power distribution companies and Pakistan International Airlines (PIA).

Authorities are expected to receive a second installment of more than $ 1bn under the $ 7bn Loan program, which is widely considered a formal after compliance with key quantitative performance standards, structural standards and indicators goals.

The 37 -month bailout package was finalized in July last year on the basis of a budget approved by Parliament and was formally signed in September 2024. The first episode of 1 1.1bn was released, with the remaining seven equal installments scheduled every six months, which follow the meeting’s performance goals.

Dawn, appeared on March 15, 2025