Overview
- Pakistan and IMF staff reached a third‑review agreement that officials say has gone to the Executive Board, setting up consideration of a roughly $1.2 billion tranche in May.
- Performance data show Pakistan met about 13–14 of 17 end‑December 2025 targets, including a revised net international reserves floor of negative $6.99 billion, while the tax authority missed its collection goal and could not supply retailer and filer data.
- The government agreed to a tighter budget path that targets a Rs2.8 trillion primary surplus for FY2026‑27, and it plans a 22% increase in Benazir Income Support Programme cash to Rs845 billion, which would lift stipends for low‑income families.
- To cut borrowing costs and improve cash control, authorities will fold about 70 public accounts with roughly Rs290–300 billion into a Treasury Single Account, after confirming that state entities had parked about Rs1 trillion in commercial banks.
- Debt risks will be addressed by lengthening domestic maturities to four years and two months by June 2027 and by retiring State Bank‑held debt, with a study of the government‑securities market due by September 2026 to guide next steps.