IMF Mission Chief Says Current Program Could Be Pakistan’s Last

International Monetary Fund’s (IMF) Mission Chief for Pakistan, Nathan Porter recently hinted that the ongoing loan program could be the last one if it fully implements all economic recommendations. In an interview with Voice of America, Porter discussed Pakistan’s economic challenges and the IMF’s role in stabilizing the economy. He also confirmed that the First Review would begin in December and likely conclude in March-April 2025. Following the approval of the $7 billion IMF program, Prime Minister Shehbaz Sharif had stated it would be Pakistan’s final one. The IMF Mission Chief has echoed this sentiment and said this could become a reality if Pakistan sincerely commits to economic reforms. He noted that after the economic instability in mid-2023, Pakistan has achieved a degree of stability. Porter highlighted the IMF’s focus on maintaining a stable exchange rate and sound fiscal and monetary policies while encouraging private sector growth to drive development. He rejected claims that the program was overly harsh and defended the agency for tailoring loan programs based on a country’s needs. On Chinese loans to Pakistan, Porter reiterated that the IMF’s stance remains consistent with loans from other countries. He stressed the need for an effective tax system particularly targeting the agriculture, retail, and property sectors to alleviate pressure on ordinary citizens. Porter attributed the decline in foreign investment to excessive government interventions and recommended minimal 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.