Overview
- The IMF said discussions will continue after no staff-level agreement was reached by March 11 for the roughly $1 billion EFF tranche and $220 million under the RSF.
- Program implementation was described as broadly aligned through end-February, with the Fund stressing continued fiscal consolidation, tight monetary policy and energy-sector reforms.
- The mission flagged large gaps between federal and provincial fiscal accounts, with unresolved items including NBP and PDFL dividends and the booking of Daanish schools spending, and a technical mission is under consideration.
- The Fund voiced dissatisfaction with FBR performance, noting missed indicative revenue targets and slow progress on broadening the tax base.
- The talks now also factor in a reassessment of Middle East conflict spillovers on Pakistan’s outlook, including energy price volatility, trade disruptions and external financing needs.