The International Monetary Fund (IMF) is close to finalizing an agreement with Pakistan regarding the targets set in the initial review of a $3 billion bailout package. IMF Managing Director Kristalina Georgieva stated that an agreement on this review is expected to be reached within the current week. Once the agreement is in place, Islamabad will be eligible to receive the second installment of funding.
Georgieva highlighted tax collection as a significant concern in Pakistan. The IMF is urging Islamabad to increase tax collections to at least 15 percent of the country’s gross domestic product (GDP). Presently, Pakistan’s tax collections stand at around 12 percent of GDP.
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A team from the IMF has been engaged in discussions in Pakistan for the past two weeks, focusing on technical and policy-level talks. The purpose was to assess whether Pakistan was meeting the specified benchmarks outlined in the standby arrangement established in July.
Georgieva praised Islamabad for its dedication to the program despite encountering various challenges.
The IMF mission’s visit to Islamabad concludes on Wednesday, marking the end of their assessment and discussions with Pakistani officials.
