Economy: IMF Review Underway: Fiscal Discipline and Revenue Challenges in Focus - By IIS Research

<p></p><p></p><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">A delegation from the International Monetary Fund (IMF) has arrived in Pakistan to conduct an economic review and determine the release of the next $1 billion tranche under the $7 billion loan program, with discussions set to continue until March 15.</span></li></ul><ul><li><span style="font-family:Arial, Helvetica, sans-serif;font-size:medium;">As of now, there is a PKR 606 billion shortfall in the revenue target. However, we believe this can be largely offset by savings on interest costs, driven by the sharp 1,000 bps reduction in policy rates and a continued decline in government borrowing costs. With market yields already adjusting downward and a shift toward cheaper domestic financing, the government's overall debt servicing burden is...