IMF team to evaluate Pakistan’s economic progress next month

Topline Research reported that the International Monetary Fund (IMF) team was scheduled to visit Pakistan in the middle of next month to evaluate the country’s economic performance as part of the first review under the Extended Fund Facility (EFF) in March.  

According to Topline Research, the IMF team would assess Pakistan’s economic progress during the first review in March. However, the IMF’s representative in Pakistan refrained from commenting on the proposed schedule.

Finance Minister Muhammad Aurangzeb had previously indicated that an IMF delegation would visit Pakistan next month.

If the review concluded successfully, Pakistan was expected to receive the next $1 billion tranche.

The three-year loan programme spanned from 2024 to September 2027, with six biannual reviews to be completed under the $7 billion EFF programme.

The disbursement of the next tranche was contingent on the fulfilment of various conditions.

Topline Research stated that the government’s performance on most of the seven new IMF targets had been positive.

The government had successfully met the foreign exchange targets for September and December 2024.

The State Bank of Pakistan’s (SBP) domestic asset target had also been achieved.

Furthermore, targets for the primary budget deficit and new tax filers appeared attainable.

The IMF board might have granted waivers for minor deviations in certain targets, provided corrective measures were implemented.

The report highlighted concerns regarding the Federal Board of Revenue (FBR) falling short of some revenue targets, including tax collection under the trader-friendly scheme.

Data on targeted cash transfers remained unavailable so far. Despite these challenges, the government’s performance aligned with most of the criteria, creating a promising outlook for securing the next tranche.

Addressing weaknesses, such as achieving tax targets, would require further attention.