Pakistan Faces IMF Review with Key Reforms Still Pending
ISLAMABAD – Pakistan’s upcoming economic review with the International Monetary Fund (IMF) will be crucial, as the successful completion of the process could unlock a $1 billion tranche from the $7 billion Extended Fund Facility (EFF). The country has already secured more than $2 billion in earlier installments.
However, sources say several structural reforms remain incomplete, raising concerns over Pakistan’s compliance track. Out of 22 structural benchmarks set under the program, five targets have yet to be met.
One of the most critical pending conditions is the privatization of electricity distribution companies. The IMF had asked Pakistan to prepare a clear policy action plan for privatization and related transactions, but that plan is still not finalized.
Other delays include the publication of the “Corruption and Governance Diagnostic Assessment Report,” amendments to the State-Owned Enterprises (SOEs) Act, changes to the Sovereign Wealth Fund law, and the redrafting of the Public Finance Management Act.
The upcoming talks are expected to center on these reforms, with Islamabad trying to convince the IMF of its commitment to structural changes to secure continued financial support.
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