IMF holds constructive talks with Pakistan on economic reforms.

Washington: The International Monetary Fund (IMF) held constructive discussions with Pakistani authorities during an unscheduled staff visit from November 12 to 15. The talks focused on economic policy and reforms aimed at reducing vulnerabilities and setting the foundation for sustainable growth.

Nathan Porter, head of the IMF’s Pakistan mission, expressed encouragement over Pakistan’s reaffirmed commitment to the economic reforms under the 2024 Extended Fund Facility (EFF).

Sources in Pakistan’s finance ministry revealed concerns, including a revenue shortfall of 190 billion rupees ($685 million) in the first quarter of the fiscal year and substantial losses in the power and gas sectors. The IMF stressed the need for structural energy reforms and mobilising revenue from untapped tax bases.

While the IMF board had approved a $7-billion bailout package earlier, the first review under the EFF is expected in the first quarter of 2025.