ISLAMABAD: Pakistan is reportedly preparing for the upcoming review discussions with the International Monetary Fund (IMF), set to commence on September 25, according to sources within the Finance Ministry.
A positive outcome from this review is crucial for securing the next $1 billion tranche of the $7 billion Extended Fund Facility (EFF), part of which Pakistan has already received over $2 billion in two installments.Sources indicate that several critical structural reforms remain incomplete ahead of the review. Of the 22 benchmarks set by the IMF, five remain unmet, raising concerns about Pakistan’s progress and compliance.
Key among the pending issues is the privatization of electricity distribution companies. The IMF had mandated the development of a comprehensive policy action plan for privatization efforts, which has yet to be finalized.Additionally, the deadline for publishing the “Corruption and Governance Diagnostic Assessment Report” has passed, and the amendments to the State-Owned Enterprises (SOEs) Act and the Sovereign Wealth Fund law are still in progress. The IMF also emphasized the need to redraft the Public Finance Management Act, which remains unfinished.
The upcoming negotiations are expected to focus on these outstanding reforms. Pakistan aims to reassure the IMF of its commitment to implementing structural changes necessary for continued financial support and economic stability.
