Pakistan is preparing for its next round of review talks with the International Monetary Fund (IMF), set to begin on September 25. A successful review could unlock the IMF Board’s approval of a $1 billion tranche under the $7 billion Extended Fund Facility (EFF) program, under which Pakistan has already received over $2 billion in two installments. Sources say several key structural reforms remain incomplete ahead of the review, raising concerns about Pakistan’s compliance track record. Out of 22 structural benchmarks, five targets have yet to be met. One major pending issue is the privatization of electricity distribution companies. The IMF had required a finalized policy action plan for privatization and related transactions, which remains incomplete. Additionally, the target of publishing the Corruption and Governance Diagnostic Assessment Report has not been achieved, according to sources. 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.
Pakistan Gears Up for IMF Review Talks under EFF Program
