ISLAMABAD: An International Monetary Fund (IMF) delegation has arrived in Pakistan to conduct a comprehensive economic review, according to sources from the Ministry of Finance, ARY News reported.
The visiting team will hold discussions with Pakistani officials in Islamabad, with the review process expected to continue until March 15. Talks between the IMF team and finance ministry representatives have already begun.
The negotiations are structured in two phases — starting with technical-level discussions, followed by policy-level talks. The IMF will also advise on Pakistan’s budget strategy for the upcoming fiscal year 2025-26, sources revealed.
A successful round of negotiations could unlock the next $1 billion tranche for Pakistan, which is part of the $7 billion loan programme.
During their stay, the delegation will hold separate meetings with officials from the Ministry of Finance, Ministry of Energy, Ministry of Planning, State Bank of Pakistan, Federal Board of Revenue (FBR), and other key institutions. Additionally, they will also consult with representatives from the provincial governments of Punjab, Sindh, Khyber Pakhtunkhwa, and Balochistan.
The nine-member IMF mission is led by Nathan Porter and will spend about two weeks in Pakistan to assess economic performance and decide on the next tranche release.
Notably, during previous discussions held last month, the IMF delegation raised concerns over climate finance policies and opposed tax concessions on locally sold electric vehicle parts. Sources revealed the IMF advised maintaining standard tax rates in the upcoming EV policy.
The lenders also rejected proposed sales tax relief on electric vehicles and spare parts, stressing that no concessions should be offered on raw materials used in EV manufacturing or local sales of these components.
