Pakistan’s second half-yearly economic review talks with the International Monetary Fund (IMF) are underway, with provincial government representatives highlighting the challenges posed by recent floods.
Provincial govts present briefings
According to sources, representatives from Sindh, Khyber Pakhtunkhwa (KP), and Balochistan participated in the discussions with the IMF mission on Monday. During the meeting, officials shared details about the widespread damages caused by floods in their respective provinces.
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Sindh and KP officials informed the IMF that the process of assessing the scale of destruction is still ongoing. They also briefed the mission on the economic and social challenges emerging from the disaster.
Punjab to hold detailed talks tomorrow
Sources confirmed that representatives of the Punjab government will present their detailed briefing to the IMF tomorrow. The session is expected to cover provincial losses, recovery measures, and financial requirements.
Earlier in the day, the Fund asked Pakistan to provide a detailed progress report on anti-money laundering measures as negotiations continued in the Finance Ministry for the release of the next tranche under the $7 billion loan program.
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According to officials, the IMF has requested updates on multiple fronts, including the Governance and Corruption Risk Assessment Report. The global lender also wants details on the establishment of provincial-level enforcement agencies to curb money laundering and corruption.
The delegation will further be briefed on legislative steps regarding asset declarations of government officers from grades 17 to 22 and improved access to provincial officers’ asset statements.
Focus on fiscal reforms and transparency
The Finance Ministry will also present progress on the National Fiscal Package, capital market developments, and the government’s strategy for greater transparency in development projects. Officials confirmed that the IMF will be informed about delays in finalizing the Governance and Corruption Risk Assessment Report.
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The Fund has also asked to review Pakistan’s performance in the first quarter of the current fiscal year, with technical discussions taking place ahead of policy-level negotiations.
The government is hopeful that with the successful conclusion of talks, Pakistan will secure the next tranche of $1 billion, subject to IMF board approval. So far, Pakistan has already received $2.1 billion under the agreement reached in September 2024.
