IMF 'lauds' Sindh's economic performance

ISLAMABAD: The International Monetary Fund (IMF) has commended Sindh’s economic performance, stating that the province has achieved most of its economic targets, ARY News reported citing sources.

According to sources, this was revealed during a meeting between Sindh’s Provincial Secretary of Finance, Fayaz Jatoi, and IMF officials in Islamabad.

Sources revealed that the IMF reviewed Sindh’s economic performance over the past eight months and was briefed on the province’s revenue board’s performance.

The IMF appreciated Sindh’s surplus of Rs 264 billion in the first six months of the current fiscal year.

The IMF also praised Sindh’s single sales tax returns and was informed about the complexities of agricultural income tax in the province. The agricultural income tax rate is set to differ between July-December 2024 and January-June 2025.

The IMF advised Sindh to increase funding for education and public health. The province was also urged to allocate more funds to improve the quality of drinking water.

Furthermore, the IMF emphasized the need to improve living standards in underdeveloped districts.

Earlier, the International Monetary Fund asked Pakistan to achieve revenue shortfall in the next fiscal quarter.

“There is no room for revenue shortfall,” IMF delegation led by Nathan Porter reportedly told Pakistan during the talks to unlock $1 billion loan tranche of $7bln loan programme.

Sources revealed that during the talks Pakistan and the International Monetary Fund (IMF) held extensive discussions on key economic and financial matters.

During prolonged sessions, officials from the Ministry of Finance and State Bank of Pakistan (SBP) engaged with the IMF delegation on various subjects, including Islamic banking reforms, refinance schemes, and the development finance transition.

The IMF delegation urged the operationalization of the Bank Resolution Framework to strengthen the banking sector and reduce financial risks.

Discussions also covered the external sector review and foreign exchange market trends, the sources added.

The government briefed the IMF on monetary policy measures, while the IMF stressed the need for timely right-sizing measures to curb expenditures.