Pakistan is moving closer to completing the initial review of its $7 billion IMF loan program. Officials and diplomats believe that the country has taken enough steps to fulfill the requirements set by the global lender. The program, secured last year under the Extended Fund Facility (EFF), has been instrumental in stabilizing the struggling economy. The government remains optimistic about long-term financial recovery.
According to sources, Prime Minister Shehbaz Sharif’s administration has introduced key economic reforms to meet the IMF’s conditions. These include a new law to tax agricultural income, efforts to privatize Pakistan International Airlines (PIA), and policies to achieve ambitious revenue targets. These developments have been presented to IMF officials for assessment.
An IMF delegation, led by Mission Chief Nathan Porter, is currently in Pakistan to review progress. Their discussions with government officials will determine if Pakistan qualifies for the next loan installment of approximately $1 billion. Investors are closely monitoring the review, as its outcome signals the country’s economic direction and commitment to reforms.
Last month, PM Shehbaz Sharif assured IMF Managing Director Kristalina Georgieva that Pakistan remains committed to economic stability and growth. Georgieva acknowledged this in a post on X, expressing the IMF’s encouragement over Pakistan’s reform efforts.
Finance Minister Muhammad Aurangzeb also confirmed that talks with the IMF began on Tuesday. He stated that discussions would be held in two phases—technical and policy-level meetings. In his remarks, he expressed confidence that Pakistan is “well positioned” to pass the review and meet all financial targets.
Aurangzeb emphasized that Pakistan will achieve its revenue goals for the fiscal year ending in June. Any potential shortfall will be addressed by expanding the tax base. He reiterated that the government is focused on meeting all requirements under the IMF loan program.
Pakistan has managed to build credibility with the IMF after successfully completing a short-term nine-month agreement last year. In the past, several loan programs were delayed or ended prematurely due to non-compliance with conditions. This time, however, the government is determined to follow through on its commitments to maintain financial stability and secure the country’s economic future.
