ISLAMABAD – The International Monetary Fund (IMF) would send an emergency mission to Pakistan next week to discuss a possible mini-budget with the government, following Pakistan’s inability to meet IMF-set targets.
The IMF’s pressure for reforms through a mini-budget has intensified as Pakistan faces an anticipated tax shortfall of Rs321 billion for the first half of the fiscal year (July–December).
Headed by Nathan Porter, the IMF’s staff team will assess Pakistan’s economic situation from November 11 to November 15.
The team will also review the progress of the IMF loan program and examine the tax revenue shortfall experienced by the Federal Board of Revenue (FBR) in the first four months of the fiscal year.
Sources said that this unexpected visit stems from Pakistan’s failure to convince the IMF of its commitment to reforms during recent virtual meetings.
The discussions will cover various matters, including negotiations with Independent Power Producers (IPPs), the circular debt management plan, and the privatization of public entities such as PIA and DISCOs.
The potential steps, including the implementation of a mini-budget to achieve tax revenue targets, would also be discussed.
According to close IMF sources, this is not a formal review mission; the IMF decided on this extraordinary mission because it cannot wait until February-March 2025 for budgetary reforms to take effect.
