Pakistan and the International Monetary Fund (IMF) have officially initiated discussions for the first review of the $7 billion Extended Fund Facility (EFF) secured last year.
According to the Ministry of Finance, the IMF delegation, led by Nathan Porter, met with Finance Minister Muhammad Aurangzeb in Islamabad. The meeting focused on the overall economic situation in the country.
During the meeting, Pakistan has assured the global lender of its commitment to fiscal discipline and economic reforms as talks continue in Islamabad for the latest economic review.
Finance Minister Muhammad Aurangzeb briefed the IMF delegation on the country’s macroeconomic situation, revenue collection, and progress on structural reforms. He reiterated that Pakistan remains committed to meeting the conditions of its $7 billion loan programme.
The discussions covered Pakistan’s economic performance in the first half of the current fiscal year, with officials presenting data on fiscal deficit, primary balance, revenue collection, and provincial surpluses. The IMF team also reviewed Pakistan’s Public Sector Development Programme (PSDP) expenditures and proposed budgetary adjustments.
Officials from the finance ministry, planning commission, and Federal Board of Revenue (FBR) participated in the talks, providing insights into tax collection efforts and government spending.
The IMF delegation was also briefed on Pakistan’s Green Initiative, highlighting climate change-related fiscal strategies.
The meeting was attended by senior IMF officials, including review mission head Nathan Porter.
Pakistani authorities assured the delegation that structural reforms in taxation and the energy sector are being implemented to ensure economic stability.
Sources indicate that the IMF is expected to present its recommendations for Pakistan’s upcoming federal budget.
The finance ministry has already submitted a compliance report outlining progress on loan conditions, including measures to control the fiscal deficit and improve external financing.
The IMF team will continue discussions with other ministries and financial institutions before concluding the review process.
Pakistan’s agreement with the IMF remains crucial as it seeks further loan disbursements under the programme to stabilise foreign exchange reserves and maintain investor confidence.
Previously, the IMF called for a crackdown on tax evasion in Pakistan’s real estate sector as negotiations begin for the release of a $1 billion loan tranche in Islamabad.
This demand is part of the ongoing discussions aimed at securing the next tranche of the $7 billion loan program.
As part of the plan, authorities intend to take action against individuals involved in declaring false property values, with penalties including imprisonment and fines.
Agents failing to register properties could face fines of up to Rs 500,000, while those providing false information could be fined between Rs 200,000 and Rs 500,000.
The Real Estate Regulatory Authority will be empowered to impose prison sentences of up to three years.
The negotiations for the loan tranche will continue until March 15, 2025, and are divided into two phases: technical discussions in the first phase, followed by policy-level talks.
