The IMF review shows that Pakistan fulfilled most targets, boosting investor trust. Taxes on agricultural income were applied, big budget changes were completed, and eight of the 13 required reforms were delivered on time. This helped strengthen policy direction and economic confidence.
Delays Create New Worries
Despite progress, some areas fell behind schedule. Governance and corruption reports were released late, and the tax authority missed its net collection goal. These delays could affect future budget planning, although the IMF still acknowledged better economic management during the review period.
Reforms Still Waiting
Several key actions remain incomplete. Asset declaration laws were amended and power sector payments improved, but the plan to end special economic zones missed its deadline. The tax exemption on sugar imports also continued. Excise duty goals for fertilisers and pesticides were not met, and a support payment under BISP fell slightly short. These gaps highlight deeper structural challenges in taxation and social protection.
Economic Indicators Show Some Relief
There were positive signals too. Pakistan kept the primary deficit within limits. The Central Bank met domestic asset targets. Foreign exchange reserves increased to 14.5 billion dollars from 9.4 billion dollars in a year. Pakistan also posted its first current account surplus in 14 years. Growth recovered, though it may slow due to flood-related losses.
Pakistan received 1.2 billion dollars under EFF and RSF programmes because of this progress. The IMF added that these reforms will also help Pakistan improve water management and prepare better for future floods.
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Tariffs Rise and More May Come
Electricity tariffs have already gone up under IMF rules, increasing expenses for families and businesses. The IMF warned that more tariff adjustments may be required because old problems in the power sector still need major structural fixes.
The fund also urged Pakistan to improve governance and investment conditions. Since electricity gas prices rise with these reforms, production costs for businesses are likely to increase, possibly pushing consumer prices higher.
