ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Tuesday confirmed that talks with the International Monetary Fund (IMF) for the first biannual review of the $7 billion programme had started.
ISLAMABAD: Pakistan’s Finance Minister Muhammad Aurangzeb on Tuesday confirmed the commencement of talks with the International Monetary Fund (IMF) for the first biannual review of the country’s $7 billion Extended Fund Facility (EFF).
He expressed confidence that Pakistan was “well-positioned” for the negotiations.
In July, Pakistan and the IMF agreed on a three-year, $7 billion aid package, with the new programme designed to help the country “cement macroeconomic stability and create conditions for stronger, more inclusive, and resilient growth.”
A nine-member IMF mission has now begun its first biannual review of Pakistan’s $7 billion Extended Fund Facility (EFF).
“They are here. We will have two rounds of talks, first technical and then policy level,” Aurangzeb confirmed, he added.
The IMF delegation, led by Nathan Porter, will engage in discussions with Pakistani authorities from March 3 to 14, conducting a 10-day assessment of the country’s adherence to the quantitative performance criteria, structural benchmarks, and indicative targets under the 37-month programme.
According to local media reports, while there were some technical delays in meeting certain deadlines, these had been addressed, with delays of only a few weeks or a month.
The ongoing 37-month EFF programme consists of six reviews over the life of the bailout, and the release of the next tranche of approximately $1bn will be contingent on the success of the performance review.
Just before the IMF mission’s visit, the global lender reiterated last week that its programme aimed to raise Pakistan’s notably low tax-to-GDP ratio by 3pc of GDP while improving the fairness and efficiency of the tax system by broadening the tax base and improving tax compliance.
In 2024, the salaried class emerged as the third-largest contributor to income tax, following banks and petroleum, but exceeding textile exporters.
Additionally, a separate IMF technical mission visited the country last week to discuss approximately $1 billion in climate financing, in addition to the EFF.
