IMF Commends Pakistan’s Progress, But Deal Still Awaits Final Nod
The International Monetary Fund (IMF) has commended Pakistan for staying on track with its reform agenda. However, a final staff-level agreement (SLA) remains pending.
Talks between the IMF and Pakistani officials showed progress. Yet, two critical challenges stand in the way — confirmation of external financing and the delayed Governance and Corruption Diagnostic (GCD) report. Both are essential for concluding the agreement.
Of the nine policy tables under the Memorandum of Economic and Financial Policies (MEFP), the balance of payments and external financing details remain unsettled. Officials expect to finalize them next week.
Key Delays
The IMF also awaits updated estimates for flood-related losses. These figures are vital for revising Pakistan’s financial framework.
Finance Minister Muhammad Aurangzeb told reporters that the discussions had been “productive.” He said the agreement could be signed within two weeks if both sides resolve the remaining issues.
Sources revealed that the IMF seeks assurance from international creditors about Pakistan’s financing plans. The Fund worries that the current account deficit could widen further.
Progress and Differences
The IMF’s latest statement praised Pakistan’s strong program implementation. It said the country remains aligned with fiscal and structural reform goals. The statement also highlighted success in reducing inflation, tightening monetary policy, and reforming the energy sector.
The Fund recognized Pakistan’s work on governance and transparency. It also appreciated steps to rebuild flood-hit regions and strengthen climate resilience.
However, differences remain over contingency tax measures. The IMF rejects new levies on luxury imports. Meanwhile, local authorities resist higher taxes on fertilizer and pesticides. Both sides continue discussions to find middle ground.
Despite the delays, optimism prevails. Officials believe the agreement could be finalized within the next two weeks if all pending matters are resolved amicably.
