Pakistan, IMF open talks on 1st review of $7bn programme
Finance Minister Muhammad Aurangzeb on Tuesday confirmed that discussions between the International Monetary Fund (IMF) and Pakistan for the first biannual review of the $7 billion programme had begun, adding that the country was “well-positioned” for the talks.
Pakistan and the IMF had reached a three-year, $7bn aid package deal in July, with the new programme set to allow the country to “cement macroeconomic stability and create conditions for stronger, more inclusive and resilient growth”.
A nine-member mission from the IMF has began its first biannual review of Pakistan’s $7bn Extended Fund Facility (EFF).
“They are here. We will have two rounds of talks, first technical and then policy level,” Aurangzeb confirmed.
“I think we are well-positioned [for the review],” he added.
The IMF delegation, led by Nathan Porter, will hold discussions with Pakistani authorities for 10 days from March 3 to 14, assessing the country’s compliance with quantitative performance criteria, structural benchmarks and indicative targets under the 37-month programme.
A senior government official involved in preparations for the IMF review said there were some technical slippages for certain given deadlines, but they had been overcome with some delays — within weeks or a month.
The ongoing 37-month EFF programme consists of six reviews over the life of the bailout, and the release of the next tranche of approximately $1bn will be contingent on the success of the performance review.
Raising the tax-to-GDP ratio is crucial for Pakistan’s $7bn loan deal to stabilise its economy and manage debt. In 2024, the salaried class became the third-largest income tax contributor, trailing banks and petroleum but surpassing textile exporters.