Pakistan-IMF talks to begin Sept 23 for $1.2bn tranche
Pakistan and the International Monetary Fund (IMF) are set to begin economic review talks on September 23, with discussions expected to determine progress on key programme conditions and potentially pave the way for up to $1.2 billion in additional financing.
Recent reports confirm that the IMF mission is due in Pakistan for a review covering economic performance and implementation of the ongoing programmes.
The negotiations are expected to continue for around two weeks and will cover economic performance through June 2026, structural benchmark targets, tax reforms and measures in the power and gas sectors.
Review of economic performance
According to Finance Ministry sources cited in the supplied report, the IMF delegation will arrive in Pakistan on September 23 for the review.
Pakistan will provide a detailed briefing on its economic performance and progress against targets under structural benchmarks through June 2026. The talks will also assess progress on broader economic reforms and the government’s implementation of programme commitments.
The review comes under Pakistan’s 37-month Extended Fund Facility (EFF) programme secured in September 2024. The IMF’s most recent completed review also covered Pakistan’s EFF and Resilience and Sustainability Facility arrangements.
Energy reforms, circular debt
Energy-sector reforms are expected to be a major component of the discussions. The two sides will review targets related to circular debt in the electricity and gas sectors, including timely tariff adjustments, sectoral losses and recovery rates.
The petroleum levy, petroleum and climate support levies, and measures aimed at improving the financial position of the energy sector are also expected to come under discussion.
Gas tariffs are likely to be a particular focus, with increases expected from January, subject to the requirement of full cost recovery. IMF programme documents have previously called for timely gas tariff adjustments aligned with cost recovery.
Tax targets and measures to curb evasion
The negotiations will also examine Pakistan’s tax targets and measures to improve revenue collection.
Discussions are expected to cover efforts to curb tax evasion, as well as tax digitisation and other measures aimed at strengthening revenue administration.
Other structural reforms on the agenda include the privatisation, rightsizing and restructuring of state-owned enterprises.
