ISLAMABAD — Pakistan on Saturday sought a review of its economic targets with the visiting IMF team during talks for the third tranche of the loan programme, citing massive losses caused by recent floods across several provinces.
Officials briefed the IMF mission that flood-affected provinces had failed to achieve the agreed budget surplus targets. The provincial governments have jointly requested the lender to revise the fiscal framework to reflect the on-ground realities of flood recovery.
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According to official documents, the provinces were tasked with generating a combined surplus of Rs1,464 billion during the current fiscal year. However, Punjab, with a target of Rs740 billion, and Sindh, with Rs370 billion, both reported shortfalls due to infrastructure damage and rehabilitation costs.
Khyber Pakhtunkhwa linked its Rs220 billion target to full tax transfers from the federal government, while Balochistan, assigned Rs150 billion, also missed its goal. The shortfall has prompted Islamabad to approach global donor agencies for assistance.
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The issue will be taken up again in next week’s policy-level talks between Pakistan and the IMF to reassess fiscal discipline and disaster relief needs.
