Islamabad, March 3, 2025: A delegation from the International Monetary Fund (IMF) has arrived in Pakistan to conduct an economic review and hold discussions on the next tranche of the country’s loan program, sources said. The talks will continue until March 15.
Led by Nathan Porter, the IMF team will assess Pakistan’s economic performance and determine the release of the next $1 billion tranche under the $7 billion loan program.
The negotiations will take place in two phases including technical discussions focusing on Pakistan’s economic data and policy measures and policy-level talks to finalize conditions for the loan disbursement.
The IMF delegation will also provide recommendations for Pakistan’s 2025-26 budget, ensuring compliance with economic stabilization measures.
The delegation is scheduled to meet officials from Ministry of Finance, Ministry of Energy, Ministry of Planning, State Bank of Pakistan (SBP), Federal Board of Revenue (FBR) and other key financial institutions.
Additionally, the IMF team will engage separately with provincial governments of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan to discuss fiscal policies at the regional level.
Last month, the IMF held discussions with Pakistani officials regarding climate finance and tax policies. The global lender reportedly opposed a proposed sales tax concession on locally sold electric vehicle (EV) parts.
The IMF recommended maintaining the standard tax rate in the new EV policy and rejected tax relief on raw materials and local automobile spare parts used in EV manufacturing.
Pakistan’s economic team is expected to push for flexibility in fiscal policies while addressing IMF concerns over tax revenue and subsidy reductions.
