Overview

• Technical talks have concluded and policy-level negotiations begin Monday, with officials targeting a review wrap by October 9–10 and a likely mid-October disbursement.
• The IMF proposes absorbing flood costs by cutting the federal development program by Rs300 billion and drawing Rs150 billion from the contingency pool to keep the primary balance unchanged.
• Pakistan is pressing for relief on the primary surplus and provincial cash surplus targets due to flood-related fiscal strain.
• The FBR fell short by roughly Rs198–200 billion, and provinces say their combined Rs1.464 trillion surplus is at risk, with Punjab’s Rs740 billion pledge tied to the FBR hitting Rs14.1 trillion.
• The Fund opposes tax breaks for outdated refineries on RSF grounds, and talks also address energy-sector circular debt and state-owned enterprise governance.