The International Monetary Fund (IMF) has reaffirmed its full support for Pakistan’s economic stabilization efforts and confirmed that the Executive Board meeting to review Pakistan’s debt program will proceed as scheduled on May 9, despite the recent surge in tensions between India and Pakistan.
In a firm response to the growing geopolitical uncertainty in the region, an IMF spokesperson expressed optimism for a de-escalation of hostilities between the two nuclear-armed neighbours.
“As has been announced, the Board meeting for the first EFF review and RSF is scheduled for May 9. We do not comment on how Executive Board members vote,” the spokesperson stated during a media briefing.
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The IMF says it supports Pakistan’s economic program through its Extended Fund Facility (EFF), which is specifically designed to build reserves and help reforms aligned with the objectives of the EFF. The objectives include restoration of macroeconomic policy credibility, building resilience including through stronger buffers, and creating stronger inclusive growth.
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Meanwhile, a delegation from the IMF is expected to visit Pakistan from May 14 to 22 to finalise key discussions regarding the fiscal framework, including tax targets.
Sources close to the Finance Ministry have revealed that the Federal Board of Revenue (FBR) has proposed a revenue target of Rs 14,200 billion for the next fiscal year, an ambitious goal that will require extensive cooperation with the IMF.
The discussions between the two sides are expected to focus on the finalization of the budget targets, which will include setting taxes and other key fiscal measures.
