Pakistan is in the middle of its second round of economic review talks with the International Monetary Fund (IMF), aiming to secure the next $1.2 billion loan tranche.
Officials in Islamabad describe the discussions as “positive and constructive,” but the IMF has raised concerns over missed reform targets and delays in passing key laws.
IMF Flags Missed Reform Targets
Documents show that Pakistan was supposed to amend laws in at least 10 government institutions by June under the Memorandum of Economic and Financial Policies. The deadline was missed, and the IMF has requested explanations.
Critical pending reforms involve the Ministry of IT, Commerce, Maritime Affairs, Railways, and Water Resources. The unfinished legislation includes:
- Port Qasim Authority Act and Gwadar Port Ordinance
- Karachi Port Trust Act 1980 (amendment not completed)
- Pakistan Telecom Reorganization Act (draft not shared)
- State Life Insurance Nationalization Order (still under review)
- WAPDA Act (changes postponed)
- Pakistan Railways Act 1890 (consultations ongoing)
- Exim Bank Act (draft prepared but pending approval)
- National Bank Act (amendment linked to Sovereign Wealth Fund Act)
IMF Pushes for Stronger Export Financing
The IMF also stressed the need to improve trade and export financing. Strengthening credit flows and supporting priority sectors is seen as key to boosting Pakistan’s foreign trade performance.
Officials briefed the IMF on ongoing measures, including plans to make Exim Bank operational soon to support exporters.
Despite the IMF’s concerns, the Ministry of Finance described the talks as constructive. Officials said Pakistan remains committed to implementing reforms and closing gaps identified by the IMF.
What’s Next?
The results of these talks will determine whether Pakistan receives the next $1.2 billion tranche. Completing reform requirements and strengthening export financing are crucial steps to stabilize the economy and boost investor confidence.
Finance Minister Muhammad Aurangzeb emphasized that no new tax measures are planned for now. Speaking to the media in Islamabad, he said the government aims to raise the tax-to-GDP ratio to 11%. He also noted that several tax cases are pending in courts, and progress in these cases is expected to improve revenue collection.
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