Pakistan Braces for IMF Review Amid Economic Strain

Pakistan is facing severe economic challenges and a loss of credibility, as acknowledged by Finance Minister Muhammad Aurangzeb. The country narrowly avoided default in 2023 with the help of the IMF and is awaiting additional funds from the IMF and Asian Development Bank. Aurangzeb has stressed the need for economic and tax reforms, including a new structure where the Finance Ministry oversees tax policy while the Federal Board of Revenue focuses on tax collection. The IMF is scheduled to review Pakistan's economic program in March, which is crucial for securing further financial support. Concerns over potential regional instability, including talks of possible secession in Baluchistan, have been raised. The government is also exploring green panda bonds to attract investment for sustainable projects.