IMF continuing talks with Pakistan with more focus on fiscal spending, structural reforms: spokesman

Rice, however, declined to say if disbursements under that programme had been stopped but said further discussions were needed about Pakistan's fiscal spending plans, structural reforms, particularly in the tax and energy sectors, and social spending.

He told a regular briefing that IMF staff were unable to complete the talks during a recent mission, but the global lender remained “fully engaged” and aimed to resume the discussions in the period ahead.

“We stand ready to continue to support Pakistan,” he said. “As the recovery gains strength, it will be important to accelerate the implementation of policies and reforms needed to address some of the long-standing challenges facing the Pakistani economy.”

Pakistan this month set a target of 4.8 per cent growth in gross domestic product for the 2021-22 financial year and a fiscal deficit target of 6.3pc.

The country crossed growth projections in the FY21 financial year despite a third wave of Covid infections, reaching GDP growth of 3.96pc, after a 0.47pc contraction in FY20.