The International Monetary Fund (IMF) mission is set to begin discussions with Pakistani authorities in Islamabad today as part of the first economic review of the country’s $7 billion bailout program. The talks will also focus on the disbursement of the next loan tranche of $1 billion.

The nine-member IMF delegation, led by Nathan Porter, will remain in Pakistan for two weeks, concluding the review on March 15. The discussions will start with technical-level meetings before progressing to policy-level negotiations with government officials. The mission is also expected to provide recommendations for the upcoming fiscal year’s budget.

Pakistan has assured the IMF of its commitment to meeting the tax collection target, despite a shortfall of Rs. 384 billion in the first six months of the fiscal year. The government is likely to seek flexibility from the IMF on two critical issues: the trader-friendly tax scheme, which has fallen short of its revenue goals, and delays in provincial legislation on agricultural income tax.

The talks will involve key government institutions, including the Ministry of Finance, Ministry of Energy, Ministry of Planning, and the State Bank of Pakistan (SBP). The IMF team will also engage with the Federal Board of Revenue (FBR), the Oil and Gas Regulatory Authority (OGRA), the National Electric Power Regulatory Authority (NEPRA), and other state departments.