The International Monetary Fund (IMF) mission begins talks in Islamabad today, focusing on the first review of Pakistan’s $7 billion bailout and the disbursement of the next $1 billion tranche.
If the discussions go well, Pakistan could secure the $1 billion loan installment from the IMF.
The review will continue until March 15 and will be conducted in two phases—technical discussions first, followed by policy-level negotiations.
The IMF team will also provide recommendations for Pakistan’s FY 2025-26 budget. Any relief for the salaried class will depend monetary’s approval.
Key institutions involved include the Ministry of Finance (MoF), Ministry of Energy (MoE), Planning Commission (PC), State Bank of Pakistan (SBP), Federal Board of Revenue (FBR), Oil and Gas Regulatory Authority (OGRA), and National Electric Power Regulatory Authority (NEPRA). Separate meetings will also be held with officials from Punjab, Sindh, Khyber Pakhtunkhwa (KP), and Balochistan.
IMF and Pakistan meeting last week
Meanwhile, an IMF delegation met Pakistani officials last week to discuss climate finance. During the talks, the IMF objected to proposed sales tax relief on electric vehicles (EVs) and rejected the tax concessions outlined in Pakistan’s EV policy. The team also opposed sales tax exemptions on locally sold EV parts, recommending a standard tax rate instead.
