ISLAMABAD(The COW News Digital) The International Monetary Fund (IMF) has so far expressed satisfaction with Pakistan’s progress toward meeting the targets agreed under its ongoing economic programme, according to sources in the Ministry of Finance.
However, there is still no confirmation that an IMF mission will travel to Pakistan this month for talks on the next economic review and the release of the upcoming tranche. Officials say the discussions could instead be conducted virtually if an in-person visit is not scheduled.
According to finance ministry sources, the IMF has currently shown satisfaction with Pakistan’s performance against the agreed targets. One of the key factors behind the lender’s positive assessment is Pakistan’s recent issuance of bonds, which has helped support the country’s external financing position.
Despite the positive assessment, officials expect the rising circular debt in the power sector to remain a major challenge. The issue could come under close scrutiny during the review, with Pakistan likely to face detailed questions over the accumulation and management of power-sector arrears.
The government is also under pressure to reduce public expenditure as part of its commitments under the IMF programme. Sources said the federal government has already started implementing measures aimed at cutting official spending, with a formal notification issued in this regard.
The next discussions are expected to focus on Pakistan’s performance against targets through June 2026. The IMF is also expected to communicate new targets and conditions for the current financial year as part of the upcoming review process.
The timing and format of the talks remain uncertain. While an IMF delegation has not yet been confirmed for a visit to Pakistan, virtual negotiations remain a possibility.
The outcome of the review will be important for Pakistan as the government seeks continued financial support under the IMF programme while managing challenges related to public spending, energy-sector liabilities and external financing.
