Finance Minister Muhammad Aurangzeb confirmed on Tuesday that Pakistan has commenced discussions with the International Monetary Fund (IMF) for the first biannual review of the $7 billion programme, expressing confidence that the country is “well-positioned” for the talks.
Pakistan and the IMF had agreed on a three-year, $7 billion Extended Fund Facility (EFF) in July, aimed at strengthening macroeconomic stability and fostering inclusive and resilient growth.
A nine-member IMF mission, led by Nathan Porter, has begun its first review of the programme. “They are here. We will have two rounds of talks, first at the technical level and then at the policy level,” Aurangzeb stated.
The IMF delegation will engage with Pakistani authorities from March 3 to 14, assessing compliance with performance criteria, structural benchmarks, and indicative targets under the 37-month programme.
A senior government official involved in the review preparations acknowledged minor technical delays in meeting some deadlines but assured that these had been addressed within weeks or a month.
The ongoing programme consists of six reviews, with the release of the next $1 billion tranche contingent on a successful performance review.
A key focus of the discussions is raising Pakistan’s tax-to-GDP ratio, which is crucial for economic stability and debt management. In 2024, salaried individuals became the third-largest income tax contributors, following banks and the petroleum sector, surpassing textile exporters.
