ISLAMABAD: A mission from the International Monetary Fund (IMF) will arrive in Pakistan today (Thursday) to discuss Pakistan’s increasingly fragile fiscal position, significantly marred by the burgeoning burden of debt servicing, which has absorbed a substantial portion of the federal government’s net revenue receipts during the initial quarter of the ongoing financial year.
The team is expected to remain in the country until November 16. Their primary objective is to conduct a comprehensive review, paving the way for releasing the second tranche of funds under the $3 billion Standby Agreement (SBA).
They will engage in crucial discussions with high-ranking government officials, including the Finance Minister, the Chairman of the Federal Board of Revenue (FBR), and the Governor of the State Bank of Pakistan (SBP). The focus of these discussions is the current state of Pakistan’s economy.
Govt Claims Meeting All Conditions
The government has claimed that it has successfully met all the conditions set forth by the IMF in preparation for this meeting, signaling a significant milestone in economic reforms.
Analysts closely monitoring the situation have expressed the view that key economic targets have been achieved so far, highlighting notable developments like the government has implemented a rise in gas prices, the Petroleum Development Levy (PDL) on diesel has been raised to an unprecedented Rs 60 per liter.
The primary fiscal balance is now showing a substantial surplus, exceeding Rs 400 billion, achieved its revenue target, indicating effective tax collection measure, maintained the interest rates at a steady level, ensuring monetary policy stability and the exchange rate remains closely monitored, reacting to market conditions, and reflecting the government’s commitment to providing a competitive and stable currency value.
