Pakistan’s economic plight is not hidden from anyone. And even after IMF’s deadline Pakistan could not fulfill three out of five promises. In such a situation, how much impact will this have on the next installment?
Updated: August 7, 2025 11:21 AM IST
Debt-ridden Pakistan breaks IMF’s trust, fails to fulfill its promises, will IMF give more money?
Pakistan, which is facing poverty, is dependent on International Monetary Fund (IMF). It has taken a huge loan of 7 billion dollars (about Rs 58,100 crore) from the IMF and in return it had to achieve some targets. But Pakistan could not fulfill even those promises. According to the report, Pakistan failed to achieve three out of five targets. Despite this, it is still hoping for next installment from the IMF which will review it in September.
Which targets did Pakistan miss?
According to a report by The Express Tribune, this information has come to light in the ‘Fiscal Operations Summary’ released by the Pak Finance Ministry. The first of the three major targets of the IMF that Pakistan failed to meet was the saving of 1.2 trillion by the provinces, which was not possible due to rising expenses. Second, the Federal Board of Revenue (FBR) was unable to achieve the total revenue target of 12.3 trillion. Apart from this, Pakistan also completely missed the target of recovery of 50 billion under the ‘Tajir Dost Scheme’ launched to collect tax from retail traders.
Is Pakistan’s economy improving?
The Pakistani government report says that despite not being able to fulfill the IMF promises, there have been some positive signs. The country has achieved a primary budget surplus of 2.7 trillion Pakistani rupees against the target of 2.4 trillion, this is the second consecutive year and the highest in 24 years. Also, the total fiscal deficit was limited to 5.4% of GDP, which is 6.2 trillion.
What is difficult for pakistan?
According to the report, the Finance Ministry tried to control expenditure throughout the year, but the provincial governments, which are outside the control of the federal government, did not save Rs 1.2 trillion as promised by the IMF. They could save only Rs 921 billion, i.e. the target of Rs 280 billion was missed. According to the report, the Pakistan government is hoping that despite not meeting some targets, it will not face any serious hurdles in the next IMF review. The review may take place in September and by then Pakistan is expected to receive the next tranche of $1 billion.