Govt Could Fail to Achieve 5 Key IMF Targets Set for December-January

The federal government could miss five key targets set under the International Monetary Fund (IMF) loan program, Finance Ministry sources told ProPakistani. Sources said achieving these targets within the stipulated timeframes of December 2024 and January 2025 is increasingly uncertain. Key challenges include the privatization of two distribution companies (DISCOs) by January 2025. Privatization Commission sources said the IMF has been assured that the privatization process will be completed on time, but uncertainty looms. Also, the revenue collection target for December 2024, the imposition of a tax on agricultural income starting January 1, 2025, and the asset declaration initiative are at risk of not being fulfilled. The Ministry of Finance is trying to tax small farmers at federal personal income tax rates and commercial farmers at corporate income tax rates. However, potential delays are likely in implementing these measures, which could hinder compliance with IMF conditions, sources added. Sources said foreign exchange reserves are required to be at a level where the government can cover three months of import bills by March 2025. There isn’t enough belief that authorities could achieve such a level. Finance Division sources said if we fail to meet these targets, it will complicate the disbursement of the third IMF loan tranche after the second deposit and the lender will demand stricter conditions.