Pakistan met 14 of the 17 quantitative performance and indicative targets set under its International Monetary Fund program for the end of December 2025, strengthening its case for the approval of a $1.2 billion tranche expected to be considered next month.
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.
According to officials familiar with the review, Pakistan missed the Federal Board of Revenue’s tax collection target for end-December. In contrast, data for two other indicative targets was not available at the time of the assessment.
The FBR failed to meet its net revenue collection target of Rs6.161 trillion by December 2025. Data on income tax revenues collected from retailers was also unavailable despite earlier commitments made to the IMF, while information on the target of 500,000 new tax return filers was not provided.
Most other major fiscal, monetary, and social-sector benchmarks were met.
The IMF found that the State Bank of Pakistan’s net international reserves target for end-December had been met 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 Rs4.1 trillion, was also achieved.
Cash transfers under the Benazir Income Support Programme reached Rs326 billion, in line with the program target, while accumulated spending on health and education stood at Rs1.36 trillion by the end of December, also meeting the agreed benchmark.
Other targets met included the ceiling on total government guarantees, recorded at Rs4.542 trillion, and the limit on the State Bank’s net domestic assets, which stood at Rs15.016 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 Rs568 billion in consolidated net tax revenues, successfully meeting that benchmark. The provincial primary balance target of Rs1.227 trillion was also part of the review framework.
