IMF Flags Concerns Over Pakistan's Loan Implementation

The IMF highlighted challenges Pakistan faces in implementing a $7 billion loan package, including tax shortfalls, foreign loan delays, and inconsistent provincial tax laws. Concerns about unmet fiscal pact requirements and privatisation delays were raised, urging alignment with the Federal Board of Revenue and legislative amendments.

The International Monetary Fund (IMF) has raised concerns about Pakistan's struggle to implement its USD 7 billion loan package, citing issues such as tax shortfalls and delays in securing foreign loans.

During a five-day mission, the IMF expressed worries about Punjab's misalignment in agriculture income tax laws with federal legislation and deviations from the National Fiscal Pact, as reported by The Express Tribune.

Key issues include underperformance by the Federal Board of Revenue and loan finalization delays. The IMF urged Pakistan to seek aid from Riyadh and Beijing for deferred oil payments and debt rescheduling while emphasizing necessary legislative amendments and the privatisation of power distribution companies.

(With inputs from agencies.)