Pakistan Nears Completion of IMF Targets, Eyes Final Installment of $1.1 Billion

Pakistan is on the brink of securing the last tranche of $1.1 billion from the International Monetary Fund (IMF) as the caretaker government achieves significant milestones in meeting IMF-set targets.

The Ministry of Finance confirms that out of the 26 criteria set by the IMF for the second economic review, 25 have been fulfilled, with a detailed report sent to the IMF.

While progress has been substantial, one outstanding requirement remains regarding the amendment of laws governing government-owned institutions like the National Highway Authority (NHA), Pakistan Post, and Pakistan Broadcasting Corporation.

Despite this challenge, the caretaker government has diligently adhered to critical conditions, including refraining from borrowing from the State Bank of Pakistan and ensuring timely payment of external debts.

Efforts to clear arrears in the power sector and eliminate tax exemptions and amnesty schemes have been promptly executed, reflecting the government’s commitment to fiscal responsibility.

Key reforms in the energy sector, such as timely rebasing of electricity rates and gas prices, have been successfully implemented in line with IMF directives.

The IMF mission is expected to review the comprehensive report on target implementation before its visit to Pakistan, contingent upon the formation of the new government.