Pakistan, IMF Begin Talks for Fifth Loan Tranche

Pakistan and the International Monetary Fund (IMF) are holding talks for the release of the fifth tranche under the ongoing loan programme.

The review talks are expected to be completed this week, according to sources. The IMF mission has expressed satisfaction with the progress made so far during the technical-level discussions, the sources said.

The Federal Board of Revenue (FBR) has assured the IMF that Pakistan will achieve its tax collection target for the current fiscal year.

The IMF mission has also expressed satisfaction with the FBR’s revenue performance from July to September, according to sources.

Pakistan’s economic team has assured the IMF that a new National Finance Commission (NFC) award will be finalised by December 2026.

The IMF mission has stressed further reforms and measures in the energy sector. During the technical talks, the mission also expressed satisfaction with the overall performance of the power sector.

The IMF has called for further steps to reduce circular debt and losses of power distribution companies (DISCOs), as well as progress on privatisation.

Further measures will be discussed and finalised during the policy-level talks, according to sources.

After the successful completion of the negotiations, the IMF mission will issue a statement on the overall review. The release of the loan tranche will remain subject to approval by the IMF Executive Board.