Islamabad
The International Monetary Fund (IMF) has announced an early review of Pakistan’s $7 billion bailout package, sending a mission to Islamabad next week, four months ahead of its scheduled visit. This move follows concerns over Pakistan’s inconsistent performance in adhering to the terms of its agreement with the IMF, sources said on Wednesday.
Led by IMF Pakistan Mission Chief Nathan Porter, the team will assess Pakistan’s compliance with the 40 conditions outlined in the Extended Funding Facility (EFF) agreement. This review will focus on the country’s performance from the July-September period.
While the early review provides an opportunity to reassess financial targets that the Pakistani government believes may no longer be relevant, there are concerns within the government that it may lead to tough discussions. The Sharif-led government has expressed skepticism, fearing that the IMF’s stance might leave little room for renegotiation.
Experts suggest that if Pakistan sticks to the original targets, it may be forced to present a mini-budget to address the gaps identified in the first quarter. Despite meeting some targets, such as those set by the State Bank of Pakistan, the country missed others, including revenue collection and provincial cash surplus goals. The early IMF visit is expected to present significant challenges for Pakistan’s government.
