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Pakistan Refines IMF Review Strategy With Two-Week Deadline Before February Mission

Officials are drafting proposals to pair targeted relief with tax-base expansion ahead of next month's IMF mission.

Overview

  • The IMF team is expected in February, with completion of the third review by March projected to unlock a $1 billion tranche.
  • Prime Minister Shehbaz Sharif ordered ministries to submit concrete proposals within two weeks focused on the salaried class and industrial revival.
  • Negotiators plan to seek flexibility while remaining within programme parameters after assurances of cooperation from IMF Managing Director Kristalina Georgieva.
  • The Federal Board of Revenue was told to raise collections from alternative sources and broaden the tax base to finance relief without new burdens.
  • Officials are finalising a growth plan highlighting investment, reduced super taxes, and targeted power-tariff relief for large companies, and have already shared key data with the Fund.