Finance Division rejects claims of sole control over Pakistan’s IMF programme

The Finance Division has rejected claims that it alone controls Pakistan's IMF programme, describing it as a whole-of-government effort spanning several federal and provincial bodies. According to a clarification from the Ministry of Finance, reported by Mettis Global, the Extended Fund Facility and the Resilience and Sustainability Facility cover commitments linked to the Planning Ministry, the Energy Ministry, provincial governments, the FBR and the SBP.

The ministry added that the programme extends beyond fiscal targets, covering growth-linked structural reforms, social protection, governance, energy efficiency and climate resilience. On petroleum levy pricing, it called the view that no IMF conditions apply technically narrow and potentially misleading, noting that published documents set out fuel-price alignment with international rates through regular adjustments. It also said the Resilience and Sustainability Facility introduces a supplementary carbon levy within the petroleum levy framework.

The Finance Division also rejected the characterisation of the petroleum development levy as the central feature of the programme, saying its fiscal strategy depends mainly on FBR revenue, a wider tax base, provincial taxation and spending controls. For FY27, the programme emphasises extra revenue and stronger FBR performance, while broader economic outcomes reflect factors such as geopolitics, commodity prices, exchange rates and global shocks. Social safeguards such as BISP cash transfers and inflation-adjusted benefits were highlighted, while agricultural income tax was described as a provincial responsibility.