[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]Pakistan is currently in the crucial final stage of discussions with the International Monetary Fund (IMF) to secure the next installment of $710 million from the $3 billion standby loan program. The economic review talks, set to commence today and extend until November 15, involve policy-level negotiations with key stakeholders, including the IMF, the Federal Board of Revenue (FBR), Ministry of Finance, and the State Bank of Pakistan.
Heading the policy-level discussions is Caretaker Finance Minister Shamshad Akhtar. The agenda encompasses various aspects such as external financing, fiscal deficits, revenues, exchange rate policy, and interest rates. The IMF will also be updated on the progress of government institution reforms and the privatization program.
Pakistan has successfully met the conditions set by the IMF, sharing comprehensive economic data during the talks. The outcome of the economic assessment is pivotal in unlocking the next installment of approximately $710 million as part of the $3 billion loan program.
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The final approval, crucial for securing financial support, will be sought from the IMF’s Executive Board. With $1.2 billion already received out of the $3 billion loan program, the ongoing negotiations play a vital role in maintaining Pakistan’s economic stability.
The financial community and policymakers are closely monitoring the outcomes of the current meeting, recognizing its broader implications for Pakistan’s fiscal health and its ongoing partnership with the International Monetary Fund.
Caretaker Finance Minister Dr. Shamshad Akhtar and the economic team have briefed the visiting IMF delegation on their performance, assuring full implementation of the $3 billion loan program. The IMF delegation has emphasized strict implementation of all targets, while also appreciating the actions of the economic team.
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Pakistan has committed to meeting all IMF-set targets, with achievements highlighted in the first quarter of the fiscal year, including surpassing targets in tax collection by the Federal Board of Revenue and the Petroleum Development Levy. Additionally, measures have been taken to address the circular debt, increase electricity and gas tariffs, and implement a market-based exchange rate policy.
Reforms in government institutions are underway, and efforts to enhance the budget for the Benazir Income Support Program, improve foreign exchange reserves, and attract external financing have been communicated to the IMF team. The government remains determined to pursue sustainable economic reforms.
A visiting IMF delegation, led by Nathan Porter, is currently engaged in technical-level talks with the Finance Ministry as part of the country’s economic review. State Bank of Pakistan Governor Jameel Ahmed is also participating in the discussions.[/vc_column_text][/vc_column][/vc_row]
