[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]ISLAMABAD: According to Federal Minister of Commerce Syed Naveed Qamar, the Extended Financial Facility (EFF) between Pakistan and the International Monetary Fund (IMF) is likely to be announced this week at the staff level.
In an interview with Bloomberg, the minister stated that Pakistan had done all the necessary steps to unfreeze a $6.5 billion credit line and anticipated closing the deal “any day now.” Pakistan will receive a $1.2 billion tranche from the EFF following official announcement by the fund.
The minister stated that the IMF agreement would give investors and creditors confidence that “Pakistan’s economy is now stabilising and it has taken all the right steps, so in that sense their money will remain protected”.
“The IMF programme is the beginning, not the culmination of all other monies flowing in,” he remarked.
The minister maintained that a pickup in imports, once the nation boosted its foreign currency reserves, would also benefit exports.
Limited reserves restricted Pakistan’s ability to fund imports, including the import of intermediary goods, and as a result thousands of containers of supplies got stuck at ports.
Pakistani authorities have taken steps including increasing taxes, cutting subsidies and devaluing currency to meet the IMF’s conditions, Bloomberg reported.
The National Assembly on Monday passed the Finance (Supplementary) Bill 2023, aimed at amending certain laws relating to taxes and duties. The bill proposed to impose new taxes of Rs170 billion to minimise fiscal deficit.
The mini-budget was adopted by the lower house of parliament with a majority vote in an almost opposition-free chamber where genuine opposition voices were absent.[/vc_column_text][/vc_column][/vc_row]
