The International Monetary Fund (IMF) has commended Pakistan for the effective implementation of its $7 billion Extended Fund Facility (EFF). Following the first biannual review of the program, the IMF highlighted significant progress in fiscal consolidation, strict monetary policies to control inflation, and energy sector reforms aimed at reducing costs.
The assessment, conducted during an IMF delegation’s visit, noted no need for additional revenue measures. Instead, Pakistan committed to maintaining financial targets through controlled spending. Discussions also advanced on climate reform strategies under the Resilience and Sustainability Facility (RSF), aimed at addressing risks tied to natural disasters.
The IMF mission emphasized improvements in tax collection from underperforming sectors, including retail and real estate, while acknowledging progress in agriculture income tax legislation. Pakistan’s revised economic projections resulted in lower GDP size and tax revenues, but the country remains within tax-to-GDP ratio targets.
The power sector achieved several milestones, such as meeting tariff targets, though areas like technical losses and recovery rates need improvement. The IMF stressed further advancements in monitoring tools and the privatization of entities like power distribution companies and Pakistan International Airlines (PIA).
Moving forward, both parties will work virtually to finalize policy documents and ensure compliance, signaling optimism for Pakistan’s financial stabilization and sustainable growth goals.
