IMF Team Set to Evaluate Pakistan's Economic Progress on September 23

ISLAMABAD: The International Monetary Fund (IMF) is preparing for a significant visit to Pakistan on September 23 as part of its biannual review of the nation’s economic performance. This evaluation focuses on the implementation of the $7 billion Extended Fund Facility (EFF) and the $1.4 billion Resilience and Sustainability Facility (RSF), both crucial for Pakistan as it navigates economic challenges through June 2026.

During the nearly two-week mission, led by Iva Petrova, IMF representatives will conduct their fourth review of the EFF and third review of the RSF. The mission will initiate discussions at the State Bank of Pakistan and hold meetings with government sector teams, including an opening session with Finance Minister Muhammad Aurangzeb. A key area of focus will be the Federal Board of Revenue's (FBR) capability to fulfill its inaugural half-yearly revenue collection benchmark, particularly after previous revenue shortfalls.

This review marks a pivotal moment as it follows the provincial governments’ decision to hand over over Rs1.035 trillion of their National Finance Commission (NFC) shares to the federal government for essential national security and water resource needs. The performance against fiscal targets up to June 2026 is reported to be mostly on track but is marred by significant revenue shortfalls and policy issues, particularly regarding government interventions in commodity markets, which contradict IMF stipulations.

As the IMF and Pakistan prepare for these reviews, successful completion could lead to a disbursement of approximately $1 billion from the EFF and an additional $200 million from the RSF by late November or early December. Despite some progress, challenges remain, notably in advancing economic governance reforms, where only a few of the established targets have been met. These reforms, designed to combat corruption and enhance transparency, are still in development, highlighting ongoing issues with procurement processes in state-owned enterprises.

Source: www.dawn.com