IMF mission arrives in Pakistan for unscheduled talks

The International Monetary Fund‘s (IMF) Pakistan mission chief, Nathan Porter, initiated discussions on the $7 billion bailout approved in September.

The visit was unexpected, and talks with the finance team began ahead of schedule for the first review of the IMF’s Extended Fund Facility in early 2025.

The IMF mission met with key Pakistani officials, including the finance minister, central bank governor, and Federal Board of Revenue chairman, to discuss recent economic developments and the country’s progress under the EFF programme.

While the official purpose of the visit has not been publicly disclosed, sources within the finance ministry have indicated that the mission aims to assess Pakistan’s fiscal performance, particularly the significant revenue shortfall of nearly 190 billion rupees in the first quarter of the current fiscal year.

The external financing gap of $2.5 billion, which Pakistan needs to bridge for the current fiscal year, is also expected to be a key topic of discussion.

The IMF mission will likely scrutinise Pakistan’s efforts to secure external financing from bilateral and multilateral lenders, as well as its progress in privatising state-owned enterprises, including the national airline.

Pakistan’s long history of economic instability and reliance on IMF bailouts has raised concerns about the country’s ability to implement the necessary reforms. The IMF’s involvement is crucial for Pakistan to stabilise its economy and address its debt sustainability challenges.

Attribution: Reuters

Subediting: M. S. Salama