Pakistan 'prepares' for IMF review talks under EFF program

ISLAMABAD: Pakistan is gearing up for its next round of review talks with the International Monetary Fund (IMF), scheduled to begin on September 25, ARY News reported on Wednesday, citing sources in the Finance Ministry.

Successful completion of the review will pave the way for the IMF Board’s approval of the $1 billion tranche under the $7 billion EFF program, under which Pakistan has already received over $2 billion in two installments.

According to sources, several key structural reforms remain incomplete ahead of the economic review with the IMF.

Out of 22 structural benchmarks, five targets have not yet been met, raising concerns about Pakistan’s compliance track, sources said.

Among the outstanding conditions, the privatization of electricity distribution companies remains a critical issue.

The IMF had set a benchmark requiring the preparation of a policy action plan for privatization and related transactions, which has yet to be finalized.

Read more: Pakistan ‘seeks’ IMF approval for new tax

Sources further disclosed that the target of publishing the “Corruption and Governance Diagnostic Assessment Report” has not been achieved.

Similarly, amendments to the State-Owned Enterprises (SOEs) Act and the Sovereign Wealth Fund law are still pending.

The IMF has also called for the redrafting of the Public Finance Management Act, which is yet to be completed.

The upcoming discussions are expected to focus heavily on these pending reforms, with Pakistan seeking to assure the IMF of its commitment to structural changes in order to secure continued financial support.