Most IMF Targets Met as Pakistan Eyes $1.2 Billion Disbursement in May

Pakistan met 14 of the 17 quantitative performance and indicative targets set under its International Monetary Fund program for the end of December 2025, keeping it on track for possible approval of a $1.2 billion tranche next month.

The IMF staff has briefed the Fund’s Executive Board and shared a detailed assessment ahead of a likely board review in May 2026 for the fourth disbursement under Pakistan’s $7 billion Extended Fund Facility.

Pakistan missed the Federal Board of Revenue’s tax collection target for the end of December, while data for two other indicative targets was not available.

The shortfall on tax collection marked one of the key misses in the review period. The FBR did not achieve its net revenue collection target of Rs. 6.161 trillion by December 2025. Data on income tax revenues collected from retailers was also not available, despite earlier commitments made to the IMF, while information on the target of 500,000 new tax return filers was likewise unavailable at the time of the assessment.

Most other major fiscal, monetary, and social protection benchmarks were met.

The IMF found that the State Bank of Pakistan’s net international reserves target for end-December had been achieved after adjustment, with the benchmark revised from negative $5.6 billion to negative $6.99 billion. The ceiling on the general government’s primary budget deficit, set at Rs. 4.1 trillion, was also met.

Cash transfers under the Benazir Income Support Programme reached Rs326 billion, in line with program commitments, while accumulated spending on health and education stood at Rs1.36 trillion by the end of December, matching the target.

Other benchmarks met included the ceiling on total government guarantees, which stood at Rs. 4.542 trillion, and the limit on the State Bank’s net domestic assets, recorded at Rs. 15.016 trillion. The ceiling on the central bank’s net foreign currency swap and forward position, set at negative $1.86 billion, was also achieved.

Officials said the State Bank’s credit to the government remained at zero, while targets related to external public payment arrears, provincial revenue collection, tax refund arrears and power-sector repayment arrears were also met.

Provincial revenue authorities collected Rs. 568 billion in consolidated net tax revenues, achieving that benchmark successfully. The provincial primary balance target, set at Rs. 1.227 trillion, was also part of the review framework.