Pakistan and the International Monetary Fund have begun the second round of review negotiations under the Extended Fund Facility programme, a key step that will determine the timing of future disbursements.
Officials in the Ministry of Finance confirmed that the talks are starting today, with the IMF mission joining virtually from Türkiye due to prevailing security considerations. The discussions will span fiscal management, governance reforms, and structural adjustments at both federal and provincial levels.
The review will assess overall economic performance, while provincial governments are set to brief the IMF on administrative reforms. Particular attention will be given to digitization efforts, including progress reported by Khyber Pakhtunkhwa, where services in 173 sectors have been shifted to digital platforms. The province’s tax revenue performance will also be examined.
Revenue mobilization remains central to the negotiations. The IMF team is expected to evaluate measures linked to income tax on the agricultural sector, which is being implemented from the current fiscal year. The performance of the Federal Board of Revenue, especially its revenue targets and collection trends, will also come under scrutiny.
Governance and accountability reforms form another key component of the review. A dedicated session is planned to discuss public financial management and audit oversight mechanisms. Proposed amendments to public procurement rules under the Public Procurement Regulatory Authority will also be reviewed, with an emphasis on transparency and compliance in government purchasing.
Institutional coordination will feature in the agenda as well, including discussions on information sharing mechanisms involving the National Accountability Bureau and the Competition Commission of Pakistan.
