IMF review mission due in February as Pakistan prepares bid for next $1 billion tranche

The International Monetary Fund (IMF) is expected to send its review mission to Pakistan next month for negotiations on the third review of the ongoing loan programme, a step that would unlock the next $1 billion tranche upon completion. 

According to a news report, authorities said Pakistan’s economic team has stepped up preparations for the review and has already shared key economic and fiscal data with the Fund. On the prime minister’s instructions, the Ministry of Finance has also revisited its negotiation priorities ahead of the talks.

The government plans to raise the issue of targeted public relief during the review, with a focus on the salaried class and the industrial sector. A strategy is being finalised to seek limited relief measures while remaining aligned with IMF programme conditions.

Officials confirmed that a delegation led by the prime minister has already discussed these issues with the IMF managing director. Relevant ministries and institutions have been directed to submit concrete proposals within two weeks to support Pakistan’s case during the review.

To offset any relief initiatives, the government plans to propose alternative revenue measures, including broadening the tax base. The Federal Board of Revenue has been tasked with boosting collections through additional and non-traditional sources during the current fiscal year.

Officials said the government intends to balance fiscal discipline with selective relief and growth-oriented reforms, while remaining compliant with the IMF programme.