IMF Finds $11 Billion Trade Gap in Pakistan, Presses for Urgent Reforms

Islamabad: Pakistan’s latest economic review with the International Monetary Fund (IMF) has entered a critical stage after the IMF discovered a major $11 billion gap in trade data from the past two years.

According to official briefings, Pakistan’s trade systems, including Pakistan Automation System and Pakistan Single Window , reported a $5.1 billion mismatch in 2023–24, growing to $5.7 billion in 2024–25.

The IMF has urged the government to fix outdated trade data and make it public. The country’s statistical system has not been updated since 2017, leading to underreporting of foreign imports, especially in key sectors like textiles ($3 billion) and metals ($1 billion).

The IMF stressed that data transparency and updated reporting systems are essential to ensure fiscal accuracy. Officials also warned that correcting the data could temporarily affect economic growth and exports.

During technical talks in Islamabad, provincial governments told the IMF they are unlikely to meet budget surplus targets due to heavy flood-related spending.

• Punjab fears it won’t meet its Rs740 billion target.

• Sindh has asked for relaxation on its Rs370 billion goal.

• Khyber Pakhtunkhwa (KP) says its Rs220 billion target depends on full funding from the federal government.

• Balochistan, aiming for Rs150 billion, is also likely to fall short.

Last year, all provinces together missed their target by Rs280 billion. The matter will be discussed further during policy-level talks next week.

The federal government has also asked the IMF for leniency on its Rs3.1 trillion primary budget surplus target, citing the financial pressure from flood relief and rebuilding efforts.

The IMF is also concerned that Pakistan has missed key reform deadlines. The country was supposed to amend 10 major laws by June, but none were completed.

Pending reforms include:

• Port Qasim Authority Act

• Gwadar Port Ordinance

• Karachi Port Trust Act

• Pakistan Telecom Reorganization Act

• State Life Insurance Act

• WAPDA Act

• Pakistan Railways Act

• Exim Bank Act

• National Bank Act (linked to Sovereign Wealth Fund Act)

The IMF has asked for a clear timeline and explanation for these delays.