The IMF had earlier projected a total external financing gap of USD 5 billion for Pakistan between 2024 and 2027, with USD 2.5 billion needed this fiscal year. Although Pakistani officials argue the gap has narrowed due to stronger performance in exports and remittances, the country still faces significant debt repayment obligations, particularly to Western financial institutions.

Pakistan had hoped to raise USD 3.2 billion to meet its debt obligations, including a USD 1.2 billion oil facility from Saudi Arabia. However, talks for this facility have stalled, and each month of delay is costing Pakistan around USD 100 million. Additionally, Pakistan is seeking a USD 1 billion loan from Dubai Islamic Bank and a debt rescheduling deal with China to manage its growing obligations.

The IMF's visit, ahead of the formal review set for March 2025, will focus on evaluating Pakistan’s macroeconomic performance, including a significant tax collection shortfall of Rs 190 billion. Officials expect the IMF to scrutinize the country’s fiscal projections closely as it navigates its complex debt and financing challenges.

The IMF had earlier projected a total external financing gap of USD 5 billion for Pakistan between 2024 and 2027, with USD 2.5 billion needed this fiscal year. Although Pakistani officials argue the gap has narrowed due to stronger performance in exports and remittances, the country still faces significant debt repayment obligations, particularly to Western financial institutions.

Pakistan had hoped to raise USD 3.2 billion to meet its debt obligations, including a USD 1.2 billion oil facility from Saudi Arabia. However, talks for this facility have stalled, and each month of delay is costing Pakistan around USD 100 million. Additionally, Pakistan is seeking a USD 1 billion loan from Dubai Islamic Bank and a debt rescheduling deal with China to manage its growing obligations.

The IMF's visit, ahead of the formal review set for March 2025, will focus on evaluating Pakistan’s macroeconomic performance, including a significant tax collection shortfall of Rs 190 billion. Officials expect the IMF to scrutinize the country’s fiscal projections closely as it navigates its complex debt and financing challenges.