IMF team due on Sept 25 for second review talks under $7b loan programme

Monitoring Desk

ISLAMABAD: The International Monetary Fund (IMF) mission is scheduled to visit Pakistan on September 25 for the second review talks under $7 billion Extended Fund Facility (EFF).
In the wake of devastating floods, the macroeconomic framework might have to be revised downward/re-adjusted, including the real GDP growth rate, CPI-based inflation, monetary policy, exports, imports, and tax revenues for the current fiscal year.
The GDP growth is likely to be revised downward from 4.2% due to the severe impact on the agriculture sector and possible escalation in inflationary pressures owing to supply disruptions of food items.
The CPI-based inflation might go up beyond the envisaged target of 5% to 7% for the current fiscal year. The export sector might also witness a dip, especially in rice exports and imports which are expected to witness a surge mainly because of damage to the farm sector caused by floods.
The trade deficit had already widened before the floods. The implementation of Agriculture Income Tax (AIT) will also be discussed in detail, as the IMF will seek details about its potential for collection.
The tax revenue target for the end of September 2025 will also become a major headache for the Pakistani negotiators in the upcoming review talks. The delay in releasing the Governance and Corruption Diagnostic (GDC) Assessment report has proved another bone of contention between the two sides because Islamabad had not granted permission to the IMF to release its report.
The IMF had publicly committed to publish this GCD Assessment Report by the end of August 2025, but this deadline was already missed. “The IMF review mission is scheduled to visit Pakistan from September 25 to October 8, 2025, for second review talks and release of the third tranche worth $1.1 billion under EFF.
Both sides will have to strike an agreement on the Memorandum of Economic and Financial Policies (MEFP) for making re-adjustment in macroeconomic numbers aligned with the realities emerged on continuous devastating floods,” top official sources confirmed while talking to the publication.