ISLAMABAD: The International Monetary Fund (IMF) mission concluded its visit to Pakistan, led by Nathan Porter, which took place from May 19 to May 23. The primary objective of the mission was to engage with Pakistani authorities and discuss the country’s upcoming budget strategy.
During the visit, detailed deliberations were held with Pakistani authorities on the budget. Nathn Porter emphasized that the budget proposals are being formulated in a manner that allows the continuation of reforms within the 2024 debt program. He also stated that the IMF aims for Pakistan to achieve a primary surplus of 1.6%, crucial for maintaining financial stability.
Porter further mentioned that the upcoming fiscal year’s budget will focus on increasing tax revenues and ongoing consultations on expenditure priorities. Discussions also covered energy sector reforms and cost reduction strategies. The mission underscored the importance of implementing fundamental reforms to boost economic growth and strengthen economic policies for sustainable development.
According to the IMF statement, there is an emphasis on tightening monetary policy to control inflation. The State Bank of Pakistan has been advised to aim for inflation rates between 5% and 7%. Additionally, directives were issued to stabilize foreign exchange reserves and keep the currency exchange rate aligned with market conditions to counter external pressures.
The IMF appreciated the cooperation of both federal and provincial governments and praised Pakistan’s ongoing economic reforms. The mission assured that discussions with Pakistan will continue positively. It was also noted that funding related to climate change adaptation will remain part of the current lending program, with plans to revisit Pakistan in the second half of 2025.
