Islamabad (TDI): In response to substantial shortfalls in performance targets, the International Monetary Fund (IMF) has planned an urgent visit to Islamabad next week, where it is anticipated to push for fiscal course adjustments, potentially through a mini-budget.
The IMF staff delegation, led by Nathan Porter, will be in Islamabad from November 11 to 15 to review recent economic developments and evaluate the performance of Pakistan’s $7 billion Extended Fund Facility (EFF) program.
This visit, however, will not constitute a formal review of the program—initially scheduled for the first quarter of 2025—but is being undertaken as a precautionary measure following deviations from the agreed macroeconomic and fiscal framework.
The decision to send the team followed Pakistan’s inability to reassure IMF officials of a corrective fiscal strategy during recent virtual discussions, according to media reports.
The government posted encouraging fiscal results in the first quarter (July-September), primarily due to non-tax revenue generated by the State Bank of Pakistan (SBP).
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However, challenges persist as the Federal Board of Revenue (FBR) has recorded a significant revenue shortfall of Rs189 billion in the first four months of the fiscal year and anticipates a gap of Rs321 billion by December.
Meanwhile, economic indicators have seen notable shifts.
Large-Scale Manufacturing (LSM) growth reached 1.3%, falling short of the 3% target.
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Inflation, measured by the Consumer Price Index (CPI), has declined, and import volumes have trended downward.
Development expenditures under the Public Sector Development Program (PSDP) were exceptionally low, with only Rs22 billion utilized out of a revised Rs1,100 billion allocation for FY 2024-25.
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