The IMF stressed the importance of the FBR meeting its revenue targets for the current month and requested a detailed plan from the FBR to address the shortfall and bridge the revenue gap
By Asghar Ali Mubarak
ISLAMABAD: Virtual discussions between officials from Pakistan’s Finance Ministry and an International Monetary Fund (IMF) mission took place on Tuesday evening, addressing critical issues related to external financing and revenue generation. While negotiations are ongoing, sources close to the matter revealed that no definitive deadline has been established for the approval of the loan by the IMF’s Executive Board.
The talks centered on the government’s efforts to secure external financing, including updates on loan rollovers and new financing commitments from friendly nations. Finance Ministry officials briefed the IMF mission on their progress, highlighting a timeline for the completion of loan rollovers, which is anticipated to be finalized by next week. The IMF mission underscored the necessity of rolling over $12 billion in debt as a prerequisite for loan approval by the Executive Board. In addition to the discussions on external financing, Federal Board of Revenue (FBR) officials participated in the virtual meeting, addressing the IMF team regarding the current revenue shortfall.
The IMF stressed the importance of the FBR meeting its revenue targets for the current month and requested a detailed plan from the FBR to address the shortfall and bridge the revenue gap. Sources indicate that the Finance Ministry is also actively pursuing fresh financing through negotiations with commercial banks. Discussions are reportedly underway with four different sources for commercial loans, which are expected to play a key role in the government’s broader financial strategy.
Finance Minister Muhammad Aurangzeb, speaking informally to the media in Parliament, disclosed that the IMF had no objections to implementing targeted subsidies. These subsidies could be distributed through the Benazir Income Support Programme (BISP) to eligible recipients. To ensure consistency, Aurangzeb mentioned that discussions would be held with chief ministers this week to apply a uniform policy nationwide.
Addressing concerns over external financing, Aurangzeb acknowledged a $2 billion gap and noted that negotiations to bridge this shortfall are in advanced stages. He emphasized the urgency of securing agreements for commercial loans, rather than their immediate issuance, and highlighted that debt rollover talks are progressing positively. The minister anticipates that relevant institutions from allied countries will soon update their governments on these developments. The ongoing negotiations reflect the government’s efforts to stabilize the country’s financial situation and secure the necessary support to address economic challenges.
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