A review delegation from the International Monetary Fund arrived in Pakistan for a 15-day assessment of the country’s performance under its ongoing financial assistance programme. The mission will stay until March 11 and conduct talks in two phases, beginning in Karachi before moving to Islamabad. Officials expect detailed negotiations on fiscal discipline, reform progress and macroeconomic stability as authorities prepare for the next federal budget cycle.
Read more : IMF praises Pakistan reforms ahead february review mission
During the visit, the IMF team will evaluate economic indicators for the first half of the current fiscal year, covering July to December performance data. In addition, discussions will outline the broad framework of the upcoming federal budget, making the review highly significant for future fiscal planning. Policymakers aim to demonstrate progress on agreed targets while seeking flexibility in areas where revenue collection has fallen short.
Although officials claim most programme benchmarks have been achieved, tax revenue remains a major concern for the Federal Board of Revenue. The FBR reported a shortfall of Rs329 billion during the first six months and Rs372 billion over seven months of the fiscal year. Consequently, the government may request a downward revision of the annual tax target while presenting corrective enforcement and compliance measures to bridge the widening gap.
Read more : Govt shares action plan with IMF ahead of review mission’s visit
Furthermore, the review will examine provincial fiscal frameworks, governance reforms and anti-corruption efforts, including oversight of the National Accountability Bureau. Authorities will brief the mission on plans to strengthen internal accountability within revenue institutions and improve transparency in public officials’ asset declarations. These structural reforms remain central to sustaining long-term economic credibility and restoring investor confidence.
Officials highlighted encouraging macroeconomic indicators, noting that Pakistan achieved a primary fiscal surplus of about 1.3 percent of GDP while provinces posted a combined cash surplus of Rs1,180 billion. Moreover, the current account remained in surplus and foreign exchange reserves stayed above programme benchmarks. Large-scale manufacturing expanded nearly 6 percent between July and November, signaling gradual recovery despite recent flood-related disruptions.
The visit forms part of the broader $7 billion Extended Fund Facility and $1.4 billion Resilience and Sustainability Facility, bringing total commitments to $8.4 billion. So far, Pakistan has received $3.3 billion under these arrangements and aims to secure continued disbursements by staying on track. As negotiations unfold, the outcome of this review will play a decisive role in shaping economic stability and fiscal direction in the months ahead.