Pakistan is expected to successfully pass the first review of its $7 billion Extended Fund Facility (EFF) program with the International Monetary Fund (IMF), according to Bloomberg sources familiar with the matter. The country has made significant progress in raising revenue and implementing key reforms to meet IMF targets.
The report highlighted steps taken by Pakistan, including the approval of a new tax law on agricultural income, efforts to privatize a stake in Pakistan International Airlines (PIA), and initiatives to meet ambitious tax collection goals—all of which have been presented to the IMF. These measures are seen as crucial for improving Pakistan’s financial position amid an ongoing economic crisis.
If the review is approved by the IMF board, it will unlock another tranche of funding, providing vital financial support for Pakistan as it approaches its annual budget, typically presented in June. The $7 billion EFF, secured last summer, was a critical lifeline for Pakistan to stabilize its economy, with an initial $1 billion disbursement.
Finance Minister Muhammad Aurangzeb expressed confidence on Tuesday that Pakistan is “well positioned” for the IMF review, which involves both technical and policy-level discussions. He reaffirmed Pakistan’s commitment to economic reforms, particularly in the areas of taxation and energy, during meetings with the IMF mission.
According to sources, Pakistan has also submitted reports on its fiscal deficit, revenue collection, and primary surplus, in line with the IMF’s conditions under the loan program. Following the conclusion of the ongoing talks, the IMF staff will finalize its recommendations, which will be presented to the IMF Executive Board for approval, potentially unlocking additional funding for Pakistan.
