On the culmination of negotiations between Pakistan and the International Monetary Fund (IMF), both parties anticipate significant progress under the $3 billion Standby Arrangement (SLA). The draft of the Memorandum of Economic and Financial Policies is slated for finalization.
Sources optimist about the expected staff-level agreement SLA for the $1.1 billion installment on the last day of discussions. Following the conclusion of talks, the IMF’s Executive Board is scheduled to approve the final tranche in April, coinciding with the annual meetings of the IMF and the World Bank in Washington starting April 15th.
In preparation for future financial endeavors, Pakistan is poised to apply for a new and larger loan program. Finance Minister Mohammad Aurangzeb, accompanied by the economic team, will undertake a visit to Washington.
The talks between Pakistan and the International Monetary Fund (IMF) to secure the final tranche of $1.1 billion under a standby arrangement have reported some significant progress. The two sides are expected to reach a staff-level agreement early next week. Sources from the Finance Ministry have revealed that Pakistan has also committed to timely increases in electricity and gas tariffs, as well as the abolishment of tax exemptions.
The sources said that the electricity tariff is expected to be further increased from July 1. Additionally, measures will be put in place for monthly, quarterly, and annual adjustments to facilitate cost recovery. Pakistan and the International Monetary Fund (IMF) struck a deal on a key condition during their economic review talks. The Pakistani government agreed to digitise the country’s tax system, a move aimed at boosting efficiency and revenue collection.
This decision reached during the latest economic review talks of the Standby Arrangement Program, underscores Pakistan’s commitment to modernizing its tax infrastructure. The agreement, which also involves the assistance of Karandaaz Company in digitization efforts, was formalized in a signing ceremony attended by Chairman FBR Malik AmjadZubairTowana and senior officials from the Ministry of Finance. Meanwhile, the government of Pakistan has ‘assured’ the International Monetary Fund (IMF) of expediting the privatisation program.
