IMF delegation due in Pakistan this month for third review

Negotiations for the third economic review between Pakistan and the International Monetary Fund (IMF) are scheduled to commence in the final decade of this month, with the IMF review mission set to visit Pakistan on 25 February.

According to sources, the IMF delegation will assess the country’s economic performance and progress against set targets for the period from July to December 2025.

The mission will receive a detailed briefing on tax reforms, the energy sector, monetary policy, and foreign exchange reserves.

Ministry of Finance sources stated that the primary budget surplus, provincial cash surplus, and provincial tax targets have been met.

However, the overall tax target for July to December 2025 was not achieved, resulting in a shortfall of PKR 32.9 billion.

Sources further reported that the Federal Board of Revenue (FBR) collected PKR 6,161 billion in taxes over six months. Pakistan is expected to receive an additional USD 3.7 billion under various semi-annual reviews by 2027.

Tax collection under the “Tajirdost” scheme and from retailers fell short of targets, while provincial governments provided a cash surplus of PKR 1,179 billion over six months and collected over PKR 568 billion in taxes from July to December.

The IMF will also be briefed on progress regarding the privatisation programme, including Pakistan International Airlines (PIA).

Upon successful completion of the review and approval by the Executive Board, Pakistan is expected to receive USD 1.2 billion, comprising USD 1 billion under the EFF programme and USD 20 million under climate financing.

To date, Pakistan has received a total of USD 3.3 billion under both programmes.