ISLAMABAD:The International Monetary Fund (IMF) has decided to dispatch a mission to Pakistan next weekfour months ahead of its planned scheduleto evaluate Pakistan’s performance on its $7 billion bailout package. This early review follows Pakistan’s mixed performance in implementing agreed-upon conditions.
The IMF Mission’s early arrival underscores the importance of the programme for IMF management and board members, while providing an opportunity to reassess targets that, according to Pakistani authorities, may have already become irrelevant one month after the loan’s approval.
Diplomatic and government sources told The Express Tribune that IMF Pakistan Mission Chief Nathan Porter will lead the delegation, tasked with reviewing progress on the implementation of roughly 40 conditions agreed upon in exchange for the bailout.
Finance ministry spokesperson Qumar Abbasi did not respond to requests for comment. Officials clarified that the IMF’s visit is just to review Pakistan’s performance during the July-September quarter.
While past IMF reviews were conducted quarterly, for the new programme the parties agreed to biannual assessments. The IMF’s staff report, released after the $7 billion loan approval, initially set the date for March 15, 2025, for the “first review and end-December 2024 for the performance and continuous criteria.”
However, this mission will arrive just a month and a half after the loan approval and four months ahead of the planned review, examining the results of the July-September targets and progress of the second quarter through October-December 2024.
Outgoing IMF Resident Representative Esther Perez also did not respond to a request for comments on the mission’s objectives, given the next review was expected in early 2025.
Within the government, views differ on whether to adjust programme targets or continue with the original goals despite some early setbacks. One group favours resetting certain targets, especially on revenue, while others argue that the IMF’s stance during loan approval leaves little room for renegotiation.
If Pakistan sticks to the original targets, sources indicate that the government may be compelled to introduce a mini-budget to address first-quarter shortfalls and anticipated second-quarter gaps. Another option could be to offset tax targets using savings from lower debt servicing costs due to recent interest rate cuts.
The IMF Mission typically includes specialists in monetary and exchange rate policy, financial markets, digitalisation, sovereign debt, climate financing, and fiscal affairs.
