Pakistan Likely to Unlock $1 Billion IMF Tranche

Pakistan will likely clear the first review of its $7 billion loan program with the International Monetary Fund (IMF) and receive $1 billion as a result, reported Bloomberg. The government has come far in meeting key IMF conditions, including the new tax on agricultural income, selling Pakistan International Airlines (PIA), and improving tax revenue goals. The IMF has already been briefed on these changes as part of the first review talks. Finance Minister Muhammad Aurangzeb has expressed confidence in meeting revenue targets for the fiscal year ending in June. He assured that any shortfall would be covered by expanding the tax net. Prime Minister Shehbaz Sharif previously told IMF Managing Director Kristalina Georgieva that Pakistan aims to shift focus toward economic growth after stabilizing the economy. Pakistan’s recent track record with the IMF has improved after successfully completing a short-term nine-month program last year, unlike previous agreements that faced delays or premature termination.