Pakistan is set to attend the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington, led by Finance Minister Muhammad Aurangzeb.
During these meetings, Pakistan will seek an Extended Fund Facility and additional climate financing funds from the IMF. Formal negotiations for the new loan program will take place during the IMF mission’s visit to Pakistan.
The proposed program aims to address Pakistan’s financial needs and priorities, with potential funding ranging from $6 to $8 billion over three years or more.
In addition to seeking financial assistance, Pakistan is focusing on revenue enhancement measures, including reforms in the Federal Board of Revenue and widening the tax net in sectors like real estate and agriculture.
Efforts are underway to increase the number of taxpayers and improve tax administration through technology investments.
The government is also prioritizing reforms in the energy sector to ensure affordable and sustainable energy solutions. This includes investments in local resources and the upgrading of oil refineries to reduce import dependency.
Additionally, measures to enhance electricity distribution and transmission efficiency are planned to reduce losses and prevent further increases in circular debt. Privatization of electricity distribution companies and loss-making state-owned enterprises is also on the agenda.
During the meetings, the finance minister will present two requests to the IMF: one for an Extended Fund Facility and the other for additional funding for climate financing.
A briefing on climate change measures will highlight Pakistan’s commitment to environmental sustainability.
The State Bank governor and finance secretary will provide economic figures to IMF officials, with the possibility of a Fund mission visiting Pakistan next month if talks with the IMF managing director are positive.
