The International Monetary Fund (IMF) team will begin discussions in Islamabad today with Pakistani officials for the first review of the country’s $7 billion bailout program. This review will determine the release of the next $1 billion loan installment.
The nine-member IMF delegation, led by Nathan Porter, will stay in Pakistan for two weeks, concluding talks on March 15. The discussions will start with technical-level reviews before moving to policy discussions with government officials. The team will also suggest measures for the next fiscal year’s budget.
Pakistan has assured the IMF that it will achieve its tax collection target, despite a Rs. 384 billion shortfall in the first half of the fiscal year. However, the government is expected to ask for flexibility on two major issues:
- The trader-friendly tax scheme, which has failed to meet its revenue goal.
- Delays in provincial legislation regarding the agricultural income tax.
The discussions will include key institutions such as the Ministry of Finance, Ministry of Energy, Ministry of Planning, and the State Bank of Pakistan (SBP). The IMF team will also meet with regulatory bodies, including the Federal Board of Revenue (FBR), the Oil and Gas Regulatory Authority (OGRA), and the National Electric Power Regulatory Authority (NEPRA).
