Pakistan and the International Monetary Fund (IMF) have officially commenced discussions for the first review of the $7 billion Extended Fund Facility (EFF) secured last year.
According to the Ministry of Finance, an IMF delegation, led by Nathan Porter, met with Finance Minister Muhammad Aurangzeb in Islamabad to assess the country’s economic situation.
During the meeting, Pakistan reaffirmed its commitment to fiscal discipline and economic reforms as negotiations continue in Islamabad.
Finance Minister Muhammad Aurangzeb updated the IMF team on Pakistan’s macroeconomic status, revenue collection, and progress on structural reforms. He emphasized that the country remains dedicated to fulfilling the conditions of its $7 billion loan programme.
Discussions focused on Pakistan’s economic performance during the first half of the current fiscal year. Officials presented data on the fiscal deficit, primary balance, revenue collection, and provincial surpluses. The IMF team also examined the Public Sector Development Programme (PSDP) expenditures and proposed budgetary adjustments.
Representatives from the finance ministry, planning commission, and Federal Board of Revenue (FBR) participated in the talks, offering insights into tax collection efforts and government spending.
Additionally, Pakistani officials briefed the IMF delegation on the country’s Green Initiative, outlining climate change-related fiscal strategies.
Senior IMF officials, including review mission head Nathan Porter, attended the meeting. Pakistani authorities assured the delegation that structural reforms in taxation and the energy sector are being implemented to enhance economic stability.
Sources suggest that the IMF is expected to provide recommendations for Pakistan’s upcoming federal budget.
The finance ministry has already submitted a compliance report detailing progress on loan conditions, including steps 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 critical as it seeks further loan disbursements to stabilize foreign exchange reserves and maintain investor confidence.
Previously, the IMF urged Pakistan to clamp down on tax evasion in the real estate sector as negotiations for the release of a $1 billion loan tranche begin in Islamabad.
This demand is part of the ongoing discussions aimed at securing the next installment of the $7 billion loan program.
As part of the plan, authorities intend to take strict action against individuals misrepresenting property values, with penalties including imprisonment and fines.
Agents who fail to register properties could face fines of up to Rs500,000, while those providing false information may be fined between Rs200,000 and Rs500,000.
The Real Estate Regulatory Authority will also be empowered to impose prison sentences of up to three years.
Negotiations for the loan tranche will continue until March 15, 2025, progressing in two phases: an initial phase of technical discussions, followed by policy-level talks.
%20have%20officially%20commenced%20discussions%20for%20the%20first%20review%20of%20the%20%247%20billion%20Extended%20Fund%20Facility%20(EFF)%20secured%20last%20year.){kind=link}