PM Shehbaz to meet IMF chief in Dubai ahead of loan review talks

Prime Minister Shehbaz Sharif is set to meet International Monetary Fund (IMF) Managing Director Kristalina Georgieva in Dubai today [Tuesday], ahead of the scheduled March 3 review for the second $1 billion tranche under Pakistan’s $7 billion loan programme. 

The meeting will take place on the sidelines of the World Governments Summit, where Sharif is leading a high-level delegation. Neither the IMF nor Pakistan’s finance ministry has officially commented on the meeting.

Express Tribune reported, citing government and diplomatic sources, that Pakistan requested the meeting, though its specific agenda remains undisclosed. Finance Minister Muhammad Aurangzeb is expected to join upon returning from Portugal. This marks the third meeting between Sharif and Georgieva in the last ten months, following their previous discussions in New York and Paris. 

The meeting comes as Pakistan prepares for IMF review talks amid ongoing economic challenges, including pressure from the real estate sector for tax cuts and growing concerns from the business community over economic growth constraints. 

The government has deferred decisions on tax relief for the real estate sector and instead formed a task force to review policy recommendations. However, no similar relief has been considered for the salaried class, which continues to face heavy taxation and inflationary pressures. 

Pakistan remains hopeful for a successful IMF review, particularly after legislative progress on agricultural income tax in Sindh and adjustments in gas pricing for in-house power generation. 

The federal and provincial governments have met key IMF conditions, including maintaining a primary budget surplus and increasing provincial tax collection. However, concerns persist over the Federal Board of Revenue’s (FBR) performance in revenue generation.

Meanwhile, an IMF mission on governance and corruption assessment is currently in Pakistan and has held meetings with financial and regulatory authorities. The mission is expected to meet with the Supreme Court and Judicial Commission before concluding its visit on February 14. A follow-up mission may visit in April, with recommendations from the assessment potentially adding new conditions to Pakistan’s existing loan programme.

Pakistan is set to publish the assessment report in July, with implementation of its recommendations becoming a key factor in securing the remaining loan tranches under the IMF programme.