The IMF staff mission, led by Iva Petrova, is expected to remain in Pakistan for around two weeks and complete both reviews by the first week of October. Successful completion of the reviews is expected to pave the way for around $1.2 billion in combined financial support.
According to Finance Ministry sources, the IMF delegation has arrived in Islamabad. Pakistan’s finance minister and the economic team will participate in the negotiations.
The discussions will focus on economic data through the end of June. Pakistani officials are expected to brief the IMF on the Sovereign Wealth Fund, efforts to reduce circular debt and the reasons for not deregulating the sugar sector.
Officials will also provide updates on the current account deficit, primary surplus, foreign exchange reserves and the exchange rate. Separate talks between the IMF and the Federal Board of Revenue (FBR) will cover measures to expand the tax base and advance tax reforms.
The Ministry of Energy will brief the IMF on circular debt and sectoral reforms, while the National Accountability Bureau (NAB) and Federal Investigation Agency (FIA) are expected to discuss measures against money laundering and terrorist financing.
The IMF will also hold discussions with the Punjab and Khyber Pakhtunkhwa governments on improving tax and non-tax revenue collection. Provincial authorities are expected to discuss measures related to agricultural tax collection as part of the review process.