IMF likely to review Pak funding in 2025 second half amid 11 new conditions
Published on May 24, 2025
By IANS
- NEW DELHI — The International Monetary Fund (IMF) is expected to conduct the
next funding review for Pakistan in the second half of 2025.
-
- According to an official IMF statement, it would maintain
ongoing discussions with Pakistani authorities to reach an agreement on the
2026 fiscal year budget terms.
-
- "The next mission associated with the next Extended
Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) reviews is
expected in the second half of 2025," according to the IMF.
-
- An IMF mission, led by Nathan Porter, has concluded its
staff visit, which focused on recent economic developments, programme
implementation, and the budget strategy for fiscal year (FY) 2026.
-
- "We held constructive discussions with the
authorities on their FY2026 budget proposals and broader economic policy, and
reform agenda supported by the 2024 EFF and the 2025 RSF," said Porter.
-
- The authorities reaffirmed their commitment to fiscal
consolidation while safeguarding social and priority expenditures, aiming for a
primary surplus of 1.6 per cent of GDP in FY2026, he added.
-
- Discussions also covered ongoing energy sector reforms
aimed at improving financial viability and reducing the high-cost structure of
Pakistan's power sector, as well as other structural reforms which will help
foster sustainable growth and promote a more level playing field for business
and investment, the IMF statement added.
-
- India has said it is "thankful" for the 11
additional conditions imposed by the IMF on Pakistan, while clarifying that it
is not opposed to financial assistance meant for genuine developmental
purposes.
-
- At the same time, New Delhi has raised serious concerns
over the timing of the recent bailout package, suggesting that the funds may
have indirectly supported Pakistan's rising defence spending.
-
- The bailout came when Pakistan was retaliating to India's
Operation Sindoor -- a military strike on terror infrastructure in Pakistan and
Pakistan-occupied Kashmir (PoK).
-
- India had asked it to reconsider the bailout as Pakistan
allows terrorists to use its soil for launching state-sponsored attacks against
Indian citizens.
-
- The IMF has imposed 11 new conditions on Pakistan for the
release of the next tranche of its bailout package, as the country continues to
harbour terrorists.
