Pakistan and International Monetary Fund (IMF) have officially initiated discussions for the first review of the extended fund facility (EFF) that was secured last year.

According to the Ministry of Finance, the IMF delegation, led by Nathan Porter, met with Finance Minister Muhammad Aurangzeb in Islamabad. The meeting focused on the overall financial situation in the country.

During the meeting, Pakistan has insured the global lender for his commitment to fiscal discipline and economic reforms as conversations continue in Islamabad for the latest economic review.

Finance Minister Muhammad Aurangzeb informed the IMF delegation on the country’s macroeconomic situation, revenue collection and progress with structural reforms. He reiterated that Pakistan remains obliged to fulfill the conditions of his $ 7 billion loan program.

The discussions covered Pakistan’s financial performance in the first half of the current financial year in which officials presented data on tax deficits, primary balance, revenue collection and provincial profits. The IMF team also reviewed Pakistan’s Public Sector Development Program (PSDP) and proposed budget adjustments.

Officials from the Ministry of Finance, the Planning Commission and the Federal Board of Revenue (FBR) participated in the negotiations and provided insight into tax collection efforts and government expenses.

The IMF delegation was also informed of Pakistan’s green initiative, which highlighted climate change-related fiscal strategies.

The meeting attended the senior IMF officials, including the Mission Head Nathan Porter.

Pakistani authorities assured the delegation that structural reforms in taxation and the energy sector are implemented to ensure financial stability.

Sources show that the IMF is expected to present its recommendations to Pakistan’s upcoming federal budget.

The Ministry of Finance has already submitted an compliance report that describes progress in loan conditions, including measures to control tax deficits and improve external funding.

The IMF team will continue discussions with other ministries and financial institutions before completing the review process.

Pakistan’s agreement with the IMF remains crucial as it seeks additional payments in the loan during the program to stabilize foreign exchange reserves and maintain investor security.

Earlier, the IMF called for a crash on tax evasion in Pakistan’s real estate sector as the negotiations begin to release a loan of $ 1 billion in Islamabad.

This demand is part of the ongoing discussions aimed at securing the next tranche of the $ 7 billion loan program.

As part of the plan, the authorities intend to intervene against persons involved in declaring false property values, with sanctions, including imprisonment and fines.

Agents who do not register properties may have fines of up to Rs 500,000, while those who provide false information could fines between Rs 200,000 and RS 500,000.

The regulatory authority for real estate will be authorized to impose prison sentences of up to three years.

Negotiations on loan trucks continue until March 15, 2025 and are divided into two phases: Technical discussions in the first phase, followed by conversations at the political level.