Pakistan, IMF Hold Talks on Third Economic Review

Islamabad: Pakistan’s economic team has begun negotiations with the International Monetary Fund (IMF) as part of the third economic review, with discussions set to continue through next week.

The IMF delegation is led by Mission Chief Eva Petrova and senior official Mahir Binici, while Pakistan’s side is headed by Finance Minister Muhammad Aurangzeb. The talks are also being attended by the Governor of the State Bank of Pakistan, the Finance Secretary, and other key officials.

An introductory session was held to brief the IMF team on the country’s economic performance and recent progress. Discussions are focusing on Pakistan’s economic outlook and overall macroeconomic indicators.

During the briefing, the finance minister said macroeconomic and fiscal stability is strengthening, financial discipline has improved, and the rebuilding of reserve buffers has contributed to economic stabilization. He added that inflation has moderated and the economy is moving toward sustainable export-led growth.

The first round of talks with the IMF review mission began in Karachi on February 25. The IMF has sought a report from the government regarding revenue shortfalls, and the Federal Board of Revenue is expected to present detailed figures on tax collection.

According to sources, a tax revenue shortfall of Rs457 billion was recorded during the first eight months of the current fiscal year. The IMF mission will be briefed on the reasons behind lower collections in sales tax, income tax, and other revenue streams.

Separate meetings with various ministries and divisions are also scheduled. The negotiations will cover reforms in the power sector, progress on circular debt targets, losses of electricity distribution companies, and government measures related to governance and anti-corruption efforts.