The International Monetary Fund (IMF) has provided Pakistan with a draft of the Memorandum of Economic and Financial Policies (MEFP) aimed at facilitating the release of a $1.2 billion tranche. This development follows ongoing virtual discussions between Pakistan’s Ministry of Finance and the IMF.
Progress towards securing the tranche hinges on reaching a staff-level agreement, contingent on consensus regarding data presented in nine tables within the MEFP. The finalization of the draft will occur after consultations between the Ministry of Finance and the State Bank of Pakistan.
Moreover, further reviews will engage key institutions such as the Ministry of Energy, the Ministry of Petroleum, the Federal Board of Revenue, and the National Accountability Bureau. These consultations will focus on performance benchmarks and policy commitments outlined in the memorandum. The MEFP will also encompass regulatory bodies including the Oil and Gas Regulatory Authority, the National Electric Power Regulatory Authority, and the Securities and Exchange Commission of Pakistan.
In addition, inputs from the Auditor General of Pakistan, provincial governments, and authorities responsible for agricultural income tax targets will be incorporated. The Ministry of Finance has circulated the MEFP draft among all relevant ministries and divisions to gather comprehensive feedback.
Looking ahead, budget consultations between Pakistan and the IMF are scheduled for the last week of April. An IMF technical mission will support the preparation of the federal budget for the fiscal year 2026–27, ensuring alignment with the Fund’s economic projections and targets. Officials from the Ministry of Finance, energy and petroleum ministries, the Federal Board of Revenue, and the State Bank will actively participate in this process.
In a significant development, an IMF delegation is anticipated to visit Pakistan towards the end of next month, remaining in the country until mid-May to conduct in-depth budget negotiations and further discussions on economic policies.
