The International Monetary Fund (IMF) has expedited its review of Pakistan’s $7 billion bailout package, sending a mission next week, four months ahead of schedule. The review will assess Pakistan’s performance on meeting the agreed-upon conditions, following mixed results in implementing these terms.
IMF Mission Chief Nathan Porter will lead the team to evaluate progress on about 40 conditions outlined for the loan. This early review highlights the program’s significance for the IMF’s management and board, while providing an opportunity to reassess targets that may have already become outdated.
The mission will focus on Pakistan’s performance during the July-September period. Previously, reviews were conducted quarterly, but the new program agreed on biannual assessments. The original first review was set for March 2025, but the early visit will examine the results of the July-September targets and progress through the October-December quarter.
Despite mixed first-quarter results, including successful monetary targets by the State Bank of Pakistan and a budget surplus by the finance ministry, Pakistan missed its tax revenue targets by a significant margin. With the revenue shortfall, some officials suggest adjusting the targets, while others advocate sticking to the original goals, which may require introducing a mini-budget to address the gaps.
Challenges also include provincial governments’ failure to meet tax goals and implement necessary agricultural tax hikes, further complicating the IMF’s conditions. However, the federal government did achieve a primary surplus, primarily due to the central bank’s annual profit.
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