KARACHI: Pakistan is continuing with macroeconomic reforms, its finance chief said on Tuesday, as a visiting International Monetary Fund (IMF) delegation formally kicked off the country’s economic review under a $7 billion loan program.
This is the first review carried out by the IMF since Pakistan secured the loan under the Extended Fund Facility (EFF). A nine-member mission of the global lending agency, led by Nathan Porter, landed in the country a day earlier to assess Pakistan’s economic performance before the disbursement of a $1.1 billion tranche.
Pakistan’s macroeconomic indicators have gradually improved since it secured the IMF bailout last year. The country’s consumer price index maintained a downward trend last month, hitting a more than 9-year low at 1.51 percent year-on-year in February.
Pakistan’s current account recorded a surplus of $682 million from July 2024 till January 2025, compared to a deficit of $1.8 billion during the same period of the previous year, according to the central bank data. The Pakistan Stock Exchange (PSX) also reported record gains last year, with frequent bullish trends dominating the market.
“[The] macroeconomic stability has been achieved in the country, and structural reforms are ongoing,” Federal Minister for Finance and Revenue Muhammad Aurangzeb said at an event in Islamabad.
Earlier in the day, Pakistan’s finance ministry released photos showing Aurangzeb, his economic team and the IMF delegation, led by Nathan Porter, holding a meeting.
A successful review and subsequent approvals can take a few weeks before the Washington-based lender releases the funds. However, Pakistan’s finance chief told Reuters his country was “well positioned” to discuss its performance with the visiting IMF team, with which it is expected to hold both technical and policy level talks in the coming days.
According to Pakistan’s Dawn newspaper, the IMF team has expressed concerns about Pakistan’s slow tax collection rate against the required target of Rs1.3 trillion ($4.65 billion) until June. The tax collection is likely to fall short by about Rs600 ($2.15 billion).
However, the newspaper noted, the international lender might look the other way, given the rest of the positive macroeconomic indicators, including a higher-than-expected budget surplus the debt-ridden nation is expected to show in its fiscal plan in June.
“Except for revenue collections, Pakistan has achieved most of its quarterly quantitative targets,” Mohammed Sohail, chief executive officer at Topline Securities, said while speaking to Arab News.
“The IMF may insist on increasing and broadening taxes in the coming budget,” he added.
One of the IMF’s requirements for Pakistan is to privatize loss-making state-owned enterprises, including the national airline and power distribution companies.
The process to sell off such enterprises has already begun, with the government having hired a financial adviser, according to Business Recorder newspaper.
Citing unnamed officials at the power division, the English-language daily said all power sector benchmarks agreed upon with the IMF were progressing as planned.
Pakistan’s finance chief says economic reforms ongoing as IMF begins $7 billion loan review
https://arab.news/nv5xm
Pakistan’s finance chief says economic reforms ongoing as IMF begins $7 billion loan review
- Successful review and subsequent approvals can take a few weeks before IMF disburses $1.1 billion
- Muhammad Aurangzeb says Pakistan is ‘well positioned’ to discuss economic performance with IMF
Pakistan, seven Muslim nations back Palestinian technocratic body, stress Gaza-West Bank unity
- The National Committee for the Administration of the Gaza Strip was announced on January 14
- Muslim nations call for consolidation of the ceasefire and unimpeded humanitarian aid into Gaza
ISLAMABAD: Pakistan and seven other Muslim-majority countries on Thursday welcomed the formation of a temporary Palestinian technocratic body to administer Gaza, stressing that it must manage daily civilian affairs while preserving the institutional and territorial link between the Gaza Strip and the West Bank amid the ongoing peace efforts.
In a joint statement, the foreign ministers of Pakistan, Egypt, Jordan, Saudi Arabia, Qatar, Türkiye, Indonesia and the United Arab Emirates said the newly announced National Committee for the Administration of the Gaza Strip would play a central role during the second phase of a broader peace plan aimed at ending the war and paving the way for Palestinian self-governance.
“The Ministers emphasize the importance of the National Committee commencing its duties in managing the day-to-day affairs of the people of Gaza, while preserving the institutional and territorial link between the West Bank and the Gaza Strip, ensuring the unity of Gaza, and rejecting any attempts to divide it,” the statement said.
The committee, announced on Jan. 14, is a temporary transitional body established under United Nations Security Council Resolution 2803 and is to operate in coordination with the Palestinian Authority, the ministers said.
The statement said the move forms part of the second phase of US President Donald Trump’s Comprehensive Peace Plan for Gaza, which the ministers said they supported, praising Trump’s efforts to end the war, ensure the withdrawal of Israeli forces and prevent the annexation of the occupied West Bank.
The top leaders of all eight Muslim countries attended a meeting with Trump in New York last September, shortly before he unveiled the Gaza peace plan.
The ministers also called for the consolidation of the ceasefire, unimpeded humanitarian aid into Gaza, early recovery and reconstruction and the eventual return of the Palestinian Authority to administer the territory, leading to a just and sustainable peace based on UN resolutions and a two-state solution on pre-1967 lines with East Jerusalem as the Palestinian capital.
