ISLAMABAD – Pakistan and an International Monetary Fund (IMF) staff mission are set to begin formal discussions on the latest reviews of the country’s ongoing financial programme.
The IMF delegation, headed by Iva Petrova, is expected to remain in Pakistan for nearly two weeks, with discussions continuing into the first week of October.
The talks will cover the fourth review of the $7 billion Extended Fund Facility (EFF) and the third review under the Resilience Support Facility (RSF).
Successful completion of both reviews could pave the way for Pakistan to receive around $1.2 billion in combined financial support. This is expected to include approximately $1 billion under the EFF and $200 million through the RSF.
The discussions will assess Pakistan’s economic performance using data available up to June 30. Government officials are expected to brief the IMF team on the sovereign wealth fund, efforts to reduce circular debt, the current account and primary balance, foreign exchange reserves and the exchange rate.
The sugar sector will also feature in the discussions, with Pakistani officials expected to explain why deregulation of the sector has not been pursued.
Separate discussions between the IMF and the Federal Board of Revenue (FBR) will focus on broadening the tax base and advancing tax reforms. The Ministry of Energy is also expected to brief the mission on circular debt and reforms in the energy sector.
The IMF team is also expected to engage with Punjab and Khyber Pakhtunkhwa governments on improving tax and non-tax revenue collection, including agricultural taxation.
Petroleum levy will be a key subject during the technical-level discussions. According to Finance Ministry sources, Pakistan had set a petroleum development levy target of Rs1,468 billion through June 2026, while collections reached Rs1,567 billion during the period.
Officials are also expected to brief the IMF on the prime minister’s petrol subsidy scheme and other economic measures. Policy-level discussions concerning the next tranche are expected during the first week of October.
The National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) will brief the IMF on measures related to combating money laundering and terrorist financing.
