IMF Economic Review: Strict Fiscal Vigilance and Circular Debt Reforms Urged

IMF Program Milestones

The International Monetary Fund's regional economic assessment highlights that Pakistan's policy stance must remain anchored in structural fiscal reforms to preserve hard-won balance-of-payments stability.

Core Reform Priorities

• Energy Sector Circular Debt: Power tariff rationalization and gas sector cost-reflective pricing are critical to stop recurring sovereign liabilities.
• Tax Broadening: Expanding the direct tax net into wholesale retail and agriculture remains a non-negotiable benchmark under the Extended Fund Facility (EFF).

Sovereign Outlook

Continued adherence to IMF performance criteria is expected to unlock co-financing from multilateral lenders and friendly bilateral partners (Saudi Arabia, UAE, China).