ISLAMABAD (Web Desk)— Pakistan and the International Monetary Fund (IMF) opened another critical round of negotiations on Monday, with the outcome set to determine whether the country secures the release of the third tranche of its ongoing loan program.
The IMF delegation arrived at the Ministry of Finance for discussions with Finance Minister Muhammad Aurangzeb, who is expected to walk the team through Pakistan’s economic targets, progress, and challenges.
A press release confirmed that the talks are part of the second economic review under the IMF deal.
IMF Briefed on Tax Revenues and Fiscal Performance
According to officials, the global lender will be briefed on tax revenues, fiscal management, and recent upgrades in Pakistan’s credit ratings by international agencies — developments the government hopes will strengthen its case for continued support.
But the IMF’s review won’t stop there. Delegates are also scheduled to sit down with representatives from provincial governments, where the focus will be on budget surpluses and long-debated taxation on agricultural income.
Provincial teams will present revenue data and outline ongoing reforms during technical sessions.
Revenue Shortfalls and Flood Damage to be Discussed
At the same time, Islamabad is preparing to explain possible revenue shortfalls in the first quarter and the measures planned to plug the gap.
Sources say the IMF will also be informed about the heavy financial toll of recent floods in Punjab and Khyber Pakhtunkhwa, including billions in emergency spending for relief and rehabilitation.
To offset the shortfall, the government is weighing tough options: slashing funds from the Public Sector Development Programme (PSDP) and even rolling out a special “flood levy.”
For now, all eyes are on the talks at the Ministry of Finance. The outcome could shape not only Pakistan’s immediate fiscal breathing space but also its credibility with international lenders.
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