Pakistan Makes Headway with IMF, Meeting Most Loan Targets

Pakistan has made significant progress in meeting the requirements set by the International Monetary Fund (IMF) for its ongoing loan program. Out of 26 conditions, the country has successfully achieved 25, according to inside sources.

The Ministry of Finance has prepared a detailed report confirming Pakistan’s compliance and has sent it to the IMF. Key achievements include:

• No New Borrowing: Pakistan avoided taking on new loans from its central bank as agreed with the IMF.
• Timely Payments: International loan payments were made on schedule.
• Refunds and Power Bills: Tax refunds were issued promptly, and the country has cleared outstanding payments in the power sector.
• No Tax Breaks: Pakistan remained committed to not offering tax amnesties or exemptions.
• Energy Price Hikes: Electricity and gas prices were increased as per IMF conditions.

The sources are confident that Pakistan will also meet the remaining target before the IMF team arrives in Islamabad for review.

Positive Outlook, Challenges Remain

This progress is crucial for Pakistan as it seeks to secure further financial support from the IMF. Earlier this week, Fitch Ratings, a credit rating agency, expressed some concern about recent political changes potentially delaying a new agreement. However, they believe a deal is necessary for Pakistan’s financial stability and expect one to be reached in the coming months.