Pakistan's IMF Bailout Target Shortfalls: A Fiscal Jigsaw

Pakistan has failed to meet three out of the five key economic targets set by the International Monetary Fund (IMF) as part of a USD 7 billion bailout package, a report indicated on Wednesday. This shortfall could potentially complicate future financial assistance negotiations.

According to the fiscal operations summary released by the Ministry of Finance, a crucial target of saving PKR 1.2 trillion was missed as the provinces overspent due to rising expenditures. The Federal Board of Revenue (FBR) did not meet its revenue collection targets either. However, the nation achieved a primary budget surplus of PKR 2.4 trillion, surpassing previous records.

Despite these setbacks, analysts predict no significant challenges during the upcoming review talks for releasing the next USD 1 billion tranche. The IMF's package signed last year has so far played a vital role in stabilizing Pakistan's economy, according to government officials.

(With inputs from agencies.)