An International Monetary Fund (IMF) mission is expected to visit Pakistan on September 23 to conduct reviews of the country’s economic performance and progress under its ongoing financial programs.
The IMF staff mission, led by Iva Petrova, is expected to conduct the fourth review of Pakistan’s $7 billion Extended Fund Facility (EFF) and the third review of the $1.4 billion Resilience and Sustainability Facility (RSF).
The mission is likely to begin its visit with technical discussions at the State Bank of Pakistan. This will be followed by meetings with government sectoral teams and an initial meeting with Finance Minister Muhammad Aurangzeb.
During the visit, the IMF team is expected to assess Pakistan’s implementation of economic policies at the beginning of the new fiscal year.
Particular attention will be given to the Federal Board of Revenue’s (FBR) revenue collection performance and its ability to meet the program’s first-ever half-yearly revenue collection structural benchmark.
The review comes amid concerns over the revenue machinery’s repeated shortfalls against annual collection targets. The IMF is expected to assess whether the FBR has sufficient capacity and preparedness to meet the agreed targets.
Successful completion of the reviews would allow Pakistan to qualify for around $1 billion under the EFF and another $200 million under the RSF.
The combined disbursement of approximately $1.2 billion is expected by the end of November or early December, subject to successful completion of the reviews and fulfillment of the agreed program requirements.
The upcoming assessment will therefore be important for Pakistan’s external financing position and continued implementation of its economic reform program.
