The International Monetary Fund (IMF) staff mission concluded its discussions with Pakistani authorities on Wednesday regarding the review of two major lending programmes, totalling $8.4 billion. However, no staff-level agreement was announced, although both sides indicated that another round of talks may occur on the sidelines of the World Bank-IMF annual meetings in Washington, Dawn reported.
As per the report, Finance Minister Muhammad Aurangzeb is set to lead a delegation to the United States later this week, accompanied by the finance secretary, the governor of the State Bank of Pakistan (SBP), and the chairman of the Federal Board of Revenue (FBR).
Sources revealed that the IMF has shared the draft Memorandum of Economic and Financial Policies (MEFP) with the Ministry of Finance. Finance Minister Muhammad Aurangzeb stated that once the MEFP is signed, a staff-level agreement will be finalized between Pakistan and the IMF. He further confirmed that Pakistan has met all the targets outlined by the IMF under the ongoing program.
Pakistan would need to provide verified estimates of flood-related losses and ensure that provincial governments absorb these costs from their own budgets. At the same time, provinces must continue to meet their cash surplus commitments to the federal government.
For the current fiscal year, Punjab is expected to provide a cash surplus of Rs740 billion, Sindh Rs370 billion, Khyber Pakhtunkhwa Rs220 billion, and Balochistan Rs185 billion.
Despite the absence of a formal wrap-up meeting with Finance Minister Aurangzeb, the IMF mission, led by mission chief Iva Petrova, did meet with Prime Minister Shehbaz Sharif. This meeting followed the Prime Minister’s recent engagements with IMF Managing Director Kristalina Georgieva to discuss flexibility in light of the damages caused by recent floods.
The IMF delegation did not issue its usual end-of-mission statement, and its representative office did not respond to requests for comment.
However, sources said that discussions were progressing smoothly, and there is no immediate need for new tax measures, although adjustments may be made depending on GDP data for the first quarter, due in December.
The government would then review any required changes, including possible rate revisions, to address fiscal gaps by January 1, 2026.
