ISLAMABAD: An International Monetary Fund (IMF) mission is set to arrive in Islamabad on Monday for the biannual review of Pakistan’s $7 billion bailout package. The review is part of the ongoing 37-month Extended Fund Facility (EFF) programme, which was finalized in July to help Pakistan stabilize its economy and promote stronger, more inclusive growth.
The mission’s visit will focus on the performance review necessary to release the next tranche of approximately $1 billion, which is contingent on meeting the program’s economic targets. A major priority for Pakistan under this deal is increasing the tax-to-GDP ratio, a crucial step in managing the country’s debt and stabilizing its economy. In 2024, the salaried class emerged as the third-largest contributor to income tax, trailing only banks and the petroleum sector.
The IMF delegation, led by Nathan Porter, will stay in Pakistan for about two weeks. The economic review will be conducted in two phases—technical discussions followed by policy-level dialogue. The IMF team will meet with officials from key institutions such as the Ministry of Finance, Ministry of Energy, Ministry of Planning, and the State Bank of Pakistan. Talks will also include discussions with the Federal Board of Revenue, Oil and Gas Regulatory Authority, and National Electric Power Regulatory Authority to address Pakistan’s economic challenges and the necessary reforms.
Read more: IMF Starts Talks in Islamabad on Pakistan’s Request for Climate Financing
Negotiations will continue until March 15, with the focus on the upcoming fiscal year 2025-26 budget. If the IMF’s approval is secured, there may be potential relief for the salaried class in the form of tax reforms.
Comments are closed, but trackbacks and pingbacks are open.