In a recent interview with Voice of America, Nathan Porter, the International Monetary Fund’s (IMF) Mission Chief for Pakistan, suggested that the ongoing loan program could be the last for the country if it fully implements the recommended economic reforms.

Porter discussed the economic challenges facing Pakistan and the IMF’s role in stabilizing the nation’s economy. He confirmed that the First Review of the program is set to begin in December and is expected to conclude by March-April 2025.

Following the approval of the $7 billion IMF program, Prime Minister Shehbaz Sharif had expressed that it would be Pakistan’s final engagement with the IMF. Porter echoed this sentiment, stating that this could become a reality if Pakistan commits to the necessary economic reforms. He noted that after experiencing economic instability in mid-2023, Pakistan has now achieved a degree of stability.

Porter emphasized the IMF’s focus on maintaining a stable exchange rate and implementing sound fiscal and monetary policies, while also encouraging private sector growth to drive development. He dismissed claims that the program was overly harsh, defending the IMF’s approach of tailoring loan programs to meet the specific needs of each country.

Regarding Chinese loans to Pakistan, Porter reiterated that the IMF’s stance remains consistent with its approach to loans from other countries. He stressed the importance of an effective tax system, particularly targeting the agriculture, retail, and property sectors, to alleviate financial pressure on ordinary citizens.

Porter attributed the decline in foreign investment to excessive government interventions and recommended minimal government involvement, reforms in public institutions, and a reduction in power generation costs to attract investment. The IMF plans to release a detailed report on these issues soon.