Islamabad ( The COW News Digital)Pakistan has failed to meet three out of five key fiscal targets set by the International Monetary Fund (IMF) for the second review of the country’s $7 billion bailout package, according to an official summary of fiscal operations.
While the government managed to achieve the primary budget surplus target of Rs 2.4 trillion, it fell short on three other critical conditions: the Rs 1.2 trillion provincial cash surplus, tax collection targets, and retail tax revenues.
The Ministry of Finance’s report revealed that the federal government reported a surplus of Rs 2.7 trillion, equivalent to 2.4% of GDP, surpassing the agreed primary surplus target. In addition, the provinces collectively achieved the overall revenue targets, marking partial success.
However, the IMF’s condition of Rs 1.2 trillion in provincial cash surpluses was missed by Rs 280 billion, as provinces managed only Rs 921 billion. Despite this shortfall, government officials believe that serious hurdles are unlikely during the next review talks, scheduled to begin next month.
Among other unmet conditions, the Federal Board of Revenue (FBR) collected Rs 11.74 trillion, missing the IMF’s tax collection benchmark of Rs 12.32 trillion. The target of raising Rs 50 billion from the retail tax scheme was also not achieved.
The breakdown of provincial performance shows that Punjab earned Rs 4 trillion and spent Rs 3.6 trillion, generating a surplus of Rs 348 billion, though with Rs 41 billion in statistical discrepancies. Sindh posted a Rs 283 billion surplus after spending Rs 2.3 trillion, but also reported Rs 48 billion in mismatches. Khyber Pakhtunkhwa recorded a surplus of Rs 176 billion, with revenue of Rs 1.5 trillion and spending of Rs 1.3 trillion, alongside a Rs 155 billion data gap.
Minister for Planning Ahsan Iqbal has proposed a revision of the NFC Award, suggesting the inclusion of performance metrics to ensure that public resources are effectively used for people-centric development.
Despite these fiscal challenges, Pakistan recorded Rs 979 billion in provincial tax revenues, exceeding the IMF’s target by Rs 58 billion. While partial compliance may slow disbursements, IMF engagement is expected to continue as Pakistan inches toward macroeconomic stabilization.
