IMF Weighs Quarterly Reviews for Pakistan's $7 Billion Bailout Amid Challenges

The International Monetary Fund (IMF) is considering switching to quarterly reviews of Pakistan’s USD 7 billion bailout package. This comes amid challenges in fiscal policies and external financing. Although no final decision has been made, the move is intended to ensure effective oversight and adherence to the program's conditions.

The International Monetary Fund (IMF) is contemplating a shift to quarterly reviews of Pakistan's USD 7 billion bailout package, following some initial setbacks in the program's implementation. Pakistani officials clarified that no final decision has yet been reached regarding the frequency of these reviews.

This consideration emerged during an unplanned visit by the IMF mission to Islamabad aimed at keeping the program on track. The Ministry of Finance is reportedly facing difficulties in rallying the provinces to maintain alignment with the package's terms, according to sources referenced by Express Tribune.

Previously, the bailout was structured around biannual reviews, with six USD 1.1 billion installments to follow the IMF board's recent approval of the program. Initial discussions between the IMF and Pakistani authorities covered diverse topics, including fiscal policies, tax collection, and the adherence to macroeconomic targets. The IMF is also evaluating progress in the enforcement of the National Fiscal Pact.

(With inputs from agencies.)