Pakistan Initiates IMF Talks to Unlock $6B for Refinery Upgrades
Pakistan has started formal discussions with the IMF to assess its financial programs, focusing on expediting the implementation of the long-stalled brownfield petroleum refinery policy. This policy, if implemented, could unlock around $6 billion for refinery upgrades.
The IMF mission will engage with Pakistani authorities to discuss corrective measures to meet the December 2025 targets. Revenue collection in Pakistan fell short by Rs 1.2 trillion, equivalent to almost 1% of its GDP, highlighting the need for urgent fiscal reforms.
Most power sector targets in Pakistan were achieved, showing progress in certain areas. However, the stagnation of the brownfield petroleum refinery policy remains a significant obstacle. The IMF mission will discuss this issue with key Pakistani authorities and institutions, including the Ministry of Finance, the Presidential Office, and parliamentary bodies like the Verkhovna Rada. These discussions aim to coordinate legislation and financial agreements related to reconstruction and investment funds.
The IMF mission will work with Pakistani authorities to address the revenue shortfall and accelerate the implementation of the brownfield petroleum refinery policy. Successful negotiations could unlock $6 billion for refinery upgrades, bolstering Pakistan's energy sector. The outcome of these talks will significantly impact Pakistan's economic trajectory and its ability to meet its IMF targets.
