IMF mission to visit Pakistan next week to assess progress on $7bn loan deal

The International Monetary Fund (IMF) will send a mission to Pakistan next week, four months ahead of its planned review, to assess the country’s progress on its $7 billion bailout package. 

According to a news report, this early evaluation, led by IMF Pakistan Mission Chief Nathan Porter, will focus on Pakistan’s performance in meeting approximately 40 conditions tied to the loan.

The mission will examine Pakistan’s July-September results and provide an update on targets set for October-December 2024. While initial reviews under this programme were scheduled to be biannual, this early assessment underscores the challenges Pakistan faces in meeting revenue collection and provincial cash surplus targets.

Results for Pakistan’s first fiscal quarter have been mixed. The State Bank of Pakistan (SBP) met its monetary goals, and the finance ministry surpassed its budget surplus target. 

However, the Federal Board of Revenue (FBR) missed its revenue goal, and provincial governments, particularly Punjab, fell short of their cash surplus commitments. FBR data shows a collection shortfall of Rs190 billion over four months, with Rs3.44 trillion collected against a target of Rs3.63 trillion.

The IMF’s visit will include specialists in monetary and exchange rate policy, debt management, fiscal affairs, and climate financing, with officials reviewing the potential need for adjustments to the programme’s targets.