Pakistan Imf Review Talks Amid Pkr 330 Billion Tax Shortfall

As Pakistan prepares for crucial review talks with the International Monetary Fund (IMF) from February 25 to March 11, 2026, the country is grappling with a significant tax revenue shortfall of PKR 330 billion (approximately $1.2 billion) for the first half of the fiscal year. Despite this shortfall, government officials have stated that there are no current plans for a mini-budget to address the revenue gap, with final decisions pending based on the outcomes of the negotiations. The IMF delegation will assess Pakistan's economic performance, focusing on revenue collection and energy issues, as the country seeks to unlock approximately $1.2 billion in disbursements, including the fourth tranche under the $7 billion Extended Fund Facility (EFF) and the second installment under the $1.4 billion climate financing program. IMF Communications Director Julie Kozack noted, "Fiscal performance has been strong," highlighting a primary fiscal surplus of 1.3% of GDP in fiscal year 2025, which aligns with program targets (Nukta Pakistan, February 24, 2026; Digital Pakistan, February 22, 2026).