Overview

• Pakistan met only two of five IMF conditions in its USD 7 billion program, missing targets on PKR 1.2 trillion in provincial savings, PKR 12.3 trillion in total revenue and PKR 50 billion from the Tajir Dost trader scheme
• Four provinces delivered a combined cash surplus of PKR 921 billion, falling PKR 280 billion short of the agreed savings goal
• Federal net revenues fell PKR 1.2 trillion short of requirements for interest and defense spending, with the gap covered by additional borrowing
• The government recorded a PKR 2.7 trillion primary budget surplus and cut its fiscal deficit to 5.4 percent of GDP, both outperforming IMF benchmarks
• Islamabad expects the IMF to approve the next USD 1 billion tranche in the September review based on progress in surplus and deficit reduction