ISLAMABAD – The Ministry of Finance claimed that Pakistan successfully reached the objectives set forth in the second review by the International Monetary Fund (IMF), just hours before the commencement of negotiations with the IMF review mission on Thursday (today).
In an official statement, the Ministry of Finance confirmed that Pakistan fulfilled all structural benchmarks, quality performance criteria, and other indicative targets outlined by the IMF.
The officials within the ministry said that Pakistan’s adherence to the agreed-upon measures would lead to the disbursement of the third tranche of $1.1 billion under the IMF’s Stand-By Arrangement.
The review marks the final assessment under the Stand-By Arrangement, with a staff-level agreement anticipated upon approval.
However, forthcoming negotiations with the IMF may encounter challenges, as the Stand-By program disbursed approximately Rs974 billion in the first six months, falling short of the Rs1.074 trillion target.
Moreover, the refunds issued by the Federal Board of Revenue (FBR) during the current government’s tenure were also high.
As of March 2024, the IMF assesses Pakistan’s capacity to achieve targets set until March 2024 at Rs 879 billion, raising concerns about meeting non-tax revenue targets in the latter half of January to June 2024.
The FBR’s target for tax collection was Rs 9.415 trillion, and while it achieved its eight-month target, it incurred a loss of Rs 33 billion until February 2024.
