WASHINGTON, Nov 15 (Reuters) – The International Monetary Fund (IMF) concluded a constructive staff visit to Pakistan from November 12 to 15, focusing on economic policy and reform measures under the $7 billion Extended Fund Facility (EFF) approved earlier this year.
Nathan Porter, IMF’s Pakistan mission chief, commended Pakistan’s renewed commitment to reforms aimed at reducing vulnerabilities and laying the groundwork for sustainable growth. The discussions, though preliminary, highlighted significant economic weaknesses.
Key concerns included a revenue shortfall of nearly 190 billion rupees ($685 million) in the fiscal year’s first quarter, an external financing gap of $2.5 billion, and the failure to privatize Pakistan International Airlines (PIA). The IMF underscored the urgency of addressing structural issues in the power and gas sectors, which continue to drain billions from the economy.
Both sides agreed on the importance of prudent fiscal and monetary policies, alongside mobilizing revenues from untapped tax bases.
Pakistan, plagued by recurrent economic crises, has received 23 IMF bailouts since 1958. The next formal review under the EFF is scheduled for the first quarter of 2025.
