Pakistan is on track to pass the first review of its $7 billion loan program with the International Monetary Fund (IMF), having made significant progress in raising revenue, according to officials and diplomats familiar with the situation, as reported by Bloomberg.

Under Prime Minister Shehbaz Sharif’s government, several key measures have been implemented, including the approval of a law to tax agricultural income, efforts to sell a stake in state-owned Pakistan International Airlines, and initiatives to meet ambitious tax targets. These developments have been presented to the IMF, with sources requesting anonymity due to the private nature of the discussions.

The IMF office in Islamabad and Pakistan’s finance ministry did not respond to requests for comment. An IMF team, led by Mission Chief Nathan Porter, is currently in Pakistan to meet with government officials and assess their progress in fulfilling the loan conditions. If the IMF approves the first review, Pakistan is set to receive approximately $1 billion as the second installment of the loan package. Investors are closely monitoring this review as an indicator of progress in economic reforms.

Last month, Sharif informed IMF Managing Director Kristalina Georgieva that his government plans to submit a strategy to boost economic growth following the achievement of stability. The IMF chief expressed encouragement regarding Pakistan’s strong commitment to reforms in a post on X.

A team from Pakistan, led by Finance Minister Muhammad Aurangzeb, initiated the “kick-off meeting” with the IMF team on Tuesday, according to a statement from the ministry. Aurangzeb stated in an interview last month that the country is confident it will meet its revenue goals for the fiscal year ending in June, and any shortfall will be addressed by expanding the tax net. He also expressed confidence in meeting other targets outlined in the program.