IMF review mission to arrive in Pakistan on March 03

ISLAMABAD: The International Monetary Fund (IMF) has affirmed that a delegation will visit Pakistan on March 03 to review the country’s $7 billion loan program, ARY News reported.

“The economic review and talks will continue until March 15,” sources said.

The nine-member mission led by Nathan Porter will stay about two weeks and assess Pakistan’s economic performance to determine the release of the next $1 billion tranche.

The IMF mission will also present its recommendations for the next financial year’s budget, sources said. “Any relief to the salaried class can only be offered after the lender agreed over it,” according to sources.

The IMF mission will hold talks with the ministries of finance and energy, planning ministry and the State Bank of Pakistan. The IMF delegation will also hold discussions with the FBR, OGRA, NEPRA and other state institutions and ministries.

The IMF team will also hold separate talks with Punjab, Sindh, Khyber Pakhtunkhwa and Balochistan governments.

Key discussions will focus on tax reforms like income tax on the agricultural sector, privatization progress, fiscal policies, and energy sector reforms. The IMF will also review monetary policy, interest rates, inflation, and exchange rate management.

An IMF delegation will hold talks with Punjab and Balochistan government over climate funding today.

Pakistan made a formal request in October last year for around $1 billion in funding from the IMF under the trust, to address the country’s vulnerability to climate change.

The country’s economy is on a long path to recovery after being stabilized under a $7 billion IMF Extended Fund Facility it secured late last year.

The Global Climate Risk Index places Pakistan among the countries most vulnerable to climate change.

Floods in 2022, which scientists said were aggravated by global warming, affected at least 33 million people and killed more than 1,700.

An International Monetary Fund (IMF) team on Monday landed in Pakistan to discuss climate financing.

As per details, discussions will focus on green budgeting, climate spending tagging, tracking, and reporting. For the upcoming fiscal year 2025-26, the government is considering imposing a carbon levy, with initial proposals set to be discussed in the next round of negotiations.

The IMF delegation is expected to provide recommendations regarding the levy.

The talks, which will continue until February 28, will also cover carbon levy, electric vehicles, and subsidies. Additionally, the IMF is set to propose measures to expand green budgeting in the next fiscal budget.