ISLAMABAD: Pakistan’s latest round of negotiations with the International Monetary Fund (IMF) for the release of a $1 billion tranche ended without a breakthrough, as concerns over the country’s fiscal outlook and missed tax collection targets overshadowed progress.
Media reports quoted officials familiar with the discussions saying that while Pakistan managed to meet the agreed performance benchmarks for the first half of the fiscal year, the IMF remained unconvinced that the government could deliver on its promise of a Rs.3.15 trillion primary budget surplus by June. That commitment, a central condition of the program, now appears increasingly out of reach.
It may be recalled that talks began in late February and were scheduled to conclude by March 11. The IMF team, led by Mission Chief Iva Petrova, left Karachi earlier than planned due to regional security concerns and continued discussions virtually from Turkiye. The mission has since returned to Washington without finalising a staff‑level agreement.
At the heart of the impasse lies the Federal Board of Revenue’s (FBR) tax collection performance. The government initially set a target of Rs.14.13 trillion, which the IMF later revised down to Rs.13.98 trillion. In this round, the FBR sought to lower the figure further to just under Rs.13.5 trillion. IMF officials, however, remain doubtful that even this reduced target can be achieved. Pakistan has already fallen short of two indicative goals: Rs.6.5 trillion in overall tax receipts and Rs.366 billion from specific revenue streams.
Responding to media queries privately, government representatives voiced optimism that the matter could be resolved before May, when the IMF is expected to return for talks on the next fiscal year’s budget.
