Sources in Pakistan’s finance ministry said some major flaws forced the IMF to intervene (Photo: AFP).
Pakistan shared its $7 billion bailout reform agenda during an unscheduled visit by an International Monetary Fund (IMF) mission last week.
According to the British news agency Reuters, the mission visited Islamabad within six weeks of the loan approval, an unusual move ahead of the first review due in the first quarter of 2025.
“We are encouraged by the confirmation of the authorities’ commitment to economic reforms under the loan program (Extended Fund Facility),” Nathan Porter, head of the IMF Pakistan Mission, who led the talks, said in a statement.
He added that constructive discussions on economic policy and reform efforts to reduce vulnerabilities would help lay the foundation for strong and sustainable growth.
The mission did not specify the weaknesses, but sources in Pakistan’s finance ministry said some major flaws prompted the IMF to intervene.
Of these, there was a shortfall of about Rs 190 billion in revenue collection during the first quarter of the current financial year.
The period also saw an external financing gap of $2.5 billion, while Pakistan failed in its bid to sell its national airline, a major setback to the privatization of loss-making state-owned enterprises.
Billions of dollars in losses in the electricity and gas sector were also discussed, the IMF said. The IMF said that energy sector reforms are crucial to restore the sector’s viability.
Both sides agreed on the need to continue prudent fiscal policies and increase untapped tax revenue, the mission added.
