Pakistan and IMF to Start First Review Talks Today

The International Monetary Fund (IMF) mission will start talks in Islamabad with government authorities today for the first economic review of Pakistan’s $7 billion bailout arrangement and disbursement of the next loan tranche of $1 billion. The nine-member review mission is being led by Nathan Porter. The IMF mission will stay for two weeks, concluding on March 15. The review will begin with technical discussions before moving to policy-level negotiations with government officials. The delegation will also present recommendations for the next fiscal year’s budget. Pakistan has assured the IMF that it will meet its tax collection target despite a shortfall of Rs. 384 billion in the first six months. The government is expected to seek flexibility from the IMF on two key issues: the trader-friendly tax scheme, which has not met its revenue target, and delays in provincial legislation on agricultural income tax. Talks will also involve key institutions, including the Ministry of Finance, Ministry of Energy, Ministry of Planning, and the State Bank of Pakistan (SBP). The IMF team will also engage with the Federal Board of Revenue (FBR), the Oil and Gas Regulatory Authority (OGRA), the National Electric Power Regulatory Authority (NEPRA), and other state departments.