Pakistan to brief IMF on economy amid talks over third tranche

September 29, 2025 (MLN): Pakistan and the International Monetary Fund (IMF) to hold talks at the Ministry of Finance as part of the second economic review tied to the release of the third tranche of the IMF loan programme.

The International Monetary Fund (IMF) delegation arrived at the Ministry of Finance on Monday to meet with Finance Minister Muhammad Aurangzeb, who will brief the team on Pakistan’s macroeconomic targets and overall economic situation.

The discussions are linked to the release of the third tranche of the IMF’s loan program for Pakistan, said a press release issued.

IMF will also likely be updated on tax revenues, fiscal performance, and recent improvements in Pakistan’s credit ratings by global agencies.

In addition, the delegation is scheduled to meet representatives of provincial governments to review their economic performance. Discussions are expected to cover budget surpluses and taxation on agricultural income.

Provincial representatives will share data during technical-level talks and brief the IMF on revenue collection and reform measures.

IMF will likely be informed about possible shortfalls in tax revenue during the first quarter and the government’s plans to address them.

The mission will also be apprised of the damages caused by recent floods, particularly in Khyber Pakhtunkhwa and Punjab, as well as the emergency expenditures incurred to manage the disaster.

To offset the revenue shortfall, proposals under consideration include cuts to the Public Sector Development Programme (PSDP) and the introduction of a flood levy, sources added.

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