According to a joint statement, the IMF mission acknowledged Pakistan’s significant progress in several areas and termed the implementation of reform conditions as strong.

The mission chief said the authorities had made notable headway in structural reforms across multiple sectors.

The IMF also agreed to a downward revision of tax collection targets, sources said.

The statement noted that discussions covered reducing the size of state-owned enterprises, improving transparency, and liberalising commodity markets.

Both sides agreed on regular tariff adjustments and broader reforms to restore sustainability in the energy sector.

The IMF mission expressed satisfaction with Pakistan’s efforts toward climate resilience and reform initiatives.

It was further agreed to maintain fiscal discipline and a tight monetary policy to keep inflation within the target range.

The IMF also stressed continued support for flood-affected communities and expressed sympathy for those impacted.

The sources said Pakistan’s revised tax collection target for the current fiscal year stands at Rs13.97 trillion, against the initial target of Rs14.13 trillion.

The staff-level agreement will be subject to approval by the IMF Executive Board.

Finance Ministry officials remain optimistic about the outcome of the talks, saying virtual discussions will continue in the coming days.

Upon successful completion of the agreement, Pakistan is expected to receive a $1.2 billion tranche from the IMF.