Islamabad, November 12, 2024 – The International Monetary Fund (IMF) delegation, led by IMF Mission Chief Nathan Porter, held an initial meeting with Finance Minister Muhammad Aurangzeb on Tuesday to discuss Pakistan’s economic progress under the Extended Fund Facility (EFF).
The delegation, which arrived in Pakistan on Monday for a staff visit, visited the Ministry of Finance, where they were welcomed by Finance Minister Aurangzeb. The meeting also included Minister of State for Finance Ali Pervaiz Malik, Governor of the State Bank of Pakistan (SBP) Jameel Ahmad, Chairman of the Federal Board of Revenue (FBR) Rashid Mehmood Langrial, and other senior finance officials.
According to a statement from the Finance Division, the focus of the discussions was on the recent economic developments in Pakistan, with particular emphasis on the performance of the EFF program. The mission’s visit is not part of the first review of the $7 billion EFF agreement, which is scheduled for early 2025.
A key topic during the meeting was Pakistan’s fiscal performance, particularly the revenue collection targets for the fiscal year 2024-25. The FBR briefed the IMF delegation on the current revenue collection position, outlining both short-term and long-term measures aimed at addressing the anticipated shortfall of Rs 230 billion in the second quarter (October-December) of the current fiscal year.
In October 2024, the FBR collected Rs 877 billion, falling short of the target of Rs 980 billion by Rs 103 billion. This shortfall is part of a broader trend, as the FBR has collected Rs 3,440 billion during the first four months of the fiscal year, missing the target of Rs 3,636 billion by Rs 196 billion.
The Finance Ministry’s statement did not provide further details on the specific measures discussed in the meeting. However, it is expected that both parties will continue to work on strategies to mitigate the fiscal deficit and boost revenue collection in the coming months.
The IMF mission’s visit highlights Pakistan’s ongoing efforts to meet its fiscal targets and ensure the successful continuation of the EFF program. With a significant revenue shortfall in the first quarter, the country will need to take robust measures to bridge the gap and meet its financial commitments to the IMF.
As the first review of the EFF is set to take place in the first quarter of 2025, the outcome of the ongoing discussions will be critical in determining Pakistan’s progress in securing future financial assistance under the program.
