Islamabad: Due to unmet targets set by the International Monetary Fund (IMF), a supporting mission from the IMF will visit Pakistan next week to negotiate the implementation of a mini-budget.
Following Pakistan’s failure to meet the agreed targets, pressure has increased to introduce a mini-budget. For the first six months of the fiscal year (July-December), there is an expected tax shortfall of around 321 billion rupees. As a result, the IMF has decided to send an emergency mission to Pakistan next week to hold talks and push for reforms through the implementation of a mini-budget.
The IMF staff team, led by Nathan Porter, will visit Pakistan from November 11 to November 15 to assess the economic situation. The team will also review Pakistan’s IMF loan program, and evaluate the shortfall in tax revenue collection by the Federal Board of Revenue (FBR) during the first four months of the current fiscal year.
Sources have stated that this sudden visit by the IMF delegation was primarily decided because Pakistani authorities have failed to convince the IMF about their reform intentions during recent virtual meetings.
According to sources, during the negotiations, the IMF will review discussions with IPPs (Independent Power Producers), the Circular Debt Management Plan, as well as the privatization of state-owned entities like PIA (Pakistan International Airlines) and DISCOs (Distribution Companies). The team will also discuss possible measures, including the mini-budget, to meet the tax revenue targets.
However, sources close to the IMF have confirmed that this is not a routine review mission. The IMF cannot wait until February-March 2025 for the implementation of budgetary reforms. Therefore, this mission is considered an emergency visit and is unprecedented.
