Pakistan and the International Monetary Fund (IMF) are holding key talks on the country’s economic review. If the review ends successfully, Pakistan is expected to receive the next tranche of about $1.2 billion, which will strengthen foreign reserves and bring financial stability.
According to sources, the IMF asked Pakistan to provide updates on the National Finance Commission (NFC). Officials assured that a meeting of the NFC will soon be held after consultations with provinces. The distribution of resources between the federal government and provinces remained a central point in the talks.
The IMF also urged Pakistan to avoid cutting budgets for health and education. It further asked for the early completion of important surveys such as the Labour Force Survey, Household Survey, and PSLM survey to ensure transparency of key data.
Pakistani officials briefed the IMF about development spending for the fiscal year 2025 and the budget framework for 2026. They also discussed the impact of recent floods on the economy and the government’s relief measures.
The IMF raised detailed questions about trade-based money laundering, risk-based monitoring, and external audit reports. In response, Pakistan highlighted progress on the e-procurement system and the Beneficial Ownership Registry. Discussions also covered monitoring of non-financial professions such as property agents and jewelers to meet global standards against money laundering and terror financing.
If all requirements are fulfilled, Pakistan is likely to secure the $1.2 billion tranche in the current review round.
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