An International Monetary Fund (IMF) delegation is set to arrive in Islamabad for its biannual assessment of Pakistan’s $7 billion bailout program, on Monday.
IMF has granted a three-year, $7 billion financial aid package to Pakistan in July with the goal of fostering more sustainable and inclusive growth of the country.
Over the duration of the 37-month Extended Fund Facility, there will be six evaluations. The results of the next evaluation will determine, when the next amount, which is expected to be around $1 billion, is disbursed.
Improving Pakistan’s tax-to-GDP ratio is a top aim, under this agreement’s first phase evaluation.
Notably, the salaried class surpassed textile exporters to become the third-largest contributor to income taxes in 2024, behind banks and the petroleum industry.
There are two stages to the IMF’s review deliberations, which are expected to go until March 15.
Negotiations at the policy level will come after the first phase, which will concentrate on technical issues.
It is anticipated that Nathan Porter’s nine-member IMF team will remain in Pakistan for roughly two weeks. The delegation will provide its suggestions for the fiscal budget for 2025–2026 during the discussions. According to sources, salaried people may receive tax relief if a deal is struck.
The State Bank of Pakistan, the Ministry of Finance, the Ministry of Energy and the Ministry of Planning are among the important organizations with which the IMF team has scheduled talks.
In order to discuss Pakistan’s economic difficulties and the required changes, discussions will also be held with representatives from the Federal Board of Revenue, Oil and Gas Regulatory Authority, and National Electric Power Regulatory Authority.
