IMF third review talks likely in Feb

The International Monetary Fund (IMF) review mission is set to visit Pakistan next month to negotiate the third economic review of the ongoing loan programme.

The completion of the third review would unlock the next $1 billion tranche for Pakistan under the programme.

According to officials, Pakistan's economic team has accelerated preparations for the review process and has already shared key economic and fiscal data with the IMF. On the prime minister's directives, the Ministry of Finance has also decided to redefine negotiation priorities for the upcoming talks with the Fund.

Finance ministry officials stated that the government plans to engage the IMF on public relief measures, particularly for the salaried class and the industrial sector. A comprehensive strategy is being formulated to seek targeted relief while remaining within the framework of the IMF programme.

It was further disclosed that a delegation led by the prime minister has already held discussions with the Managing Director of the IMF on the matter. The prime minister has directed relevant ministries and institutions to submit concrete proposals within the next two weeks aimed at securing economic relief from the Fund.

Authorities have been instructed to prepare solid recommendations and policy options to persuade the IMF on relief measures. Special focus is being placed on the industrial sector, with proposals being developed to reduce operational pressures on industries and support economic recovery. Work has begun on a structured relief and revival strategy for industries to be presented during the IMF negotiations.

Sources said Pakistan will also present a comprehensive economic growth plan to the IMF, linking relief measures with broader goals of accelerated economic growth and stability.

The IMF's managing director has reportedly assured Pakistan of full cooperation within the framework of the loan programme.

As part of the negotiations, the government has sought alternative revenue measures to offset relief initiatives, particularly through the expansion of the tax base. The Federal Board of Revenue (FBR) has been directed to increase tax revenues during the current fiscal year through non-traditional and additional sources, reducing reliance on new tax burdens.

The government aims to balance macroeconomic discipline with targeted relief and growth-oriented reforms, while remaining compliant with IMF programme conditions.