IMF concerned over incomplete circular debt target

Pakistan has reportedly fallen short of meeting the targets set by the International Monetary Fund (IMF) for the power sector's circular debt and primary balance surplus.

The IMF mission expressed concern over the failure to meet the circular debt target in the power sector and the primary balance surplus, citing sources. The primary balance surplus remained at Rs. 400 billion instead of the targeted Rs. 417 billion.

The IMF mission is expected to review the circular debt target in the next two days of policy-level talks. Caretaker Finance Minister Dr. Shamshad Akhtar assured the IMF of controlling the budget deficit by cutting expenditures without broadening the tax burden on the people. she emphasized adopting an austerity policy and expressed satisfaction with the IMF's response to Pakistan's steps, including development spending and the Benazir Income Support Programme (BISP).