As Pakistan strives to fulfill the requirements of the International Monetary Fund's loan program, financing assurances from external lenders and the implementation of an agricultural income tax will be key. On Jan. 7, Pakistan's Prime Minister Shahbaz Sharif announced that the United Arab Emirates had agreed to extend the deadline of a $2 billion debt payment originally due in January. This follows Saudi Arabia's decision to renew its $3 billion deposit with Pakistan's central bank on Dec. 5, 2024. These financial assurances solidify initial promises from Pakistan's external creditors that the IMF required before approving Pakistan's $7 billion Extended Fund Facility in September 2024, and they will be a critical part of the IMF's decision to release future tranches. The IMF will conduct its first review of the program in the first quarter of 2025 and, if approved, the program will continue to release funds in installments over 37 months....
