Islamabad: A final decision has not yet been taken on the modalities of the talks between Pakistan and the IMF for the upcoming review. According to sources in the Ministry of Finance, the IMF mission’s visit to Pakistan this month has not been confirmed, while the talks are likely to be held virtually.
According to sources, in the current situation, Pakistan has made progress on several important targets of the IMF programme. Officials say that the International Monetary Fund has been expressing overall satisfaction so far. The issuance of international bonds by Pakistan is also being seen as an important development on the financial front.
However, the circular debt of the power sector may become a difficult issue for the government in the upcoming review. Circular debt has been putting pressure on Pakistan’s power sector for a long time due to problems related to power generation, distribution and collections. In this regard, the IMF may ask the government for details of the debt volume, reasons for the increase and practical measures to limit it.
The government has also started the process of reducing government expenditure to improve fiscal discipline. Controlling expenditure and achieving fiscal targets are among the important conditions under the IMF programme. The federal government has taken formal steps to limit expenditure in this regard.
According to sources, the upcoming talks will review the programme targets up to June 2026. Progress on revenue, expenditure, energy sector and other financial indicators may be discussed at this stage.
New targets and conditions are also likely to emerge from the IMF for the current fiscal year. These may focus more on fiscal discipline, government expenditure and energy sector reforms.
The upcoming review is also important for Pakistan because progress on the programme’s goals will determine the direction of future financial cooperation with the International Monetary Fund. On the one hand, the government has to maintain fiscal targets, and on the other hand, it has to overcome problems, including in the power sector, that continue to put pressure on the economy.
The final schedule for the talks and the official announcement about the IMF mission’s visit to Pakistan are currently awaited.
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