The International Monetary Fund (IMF) has asked Pakistan to take a number of prerequisite actions within the next three weeks if it is keen to revive the stalled loan programme.
According to a report by Geo News, the IMF has conveyed to Pakistani authorities that the time has come to take “all required actions”. The Fund has reportedly given a timeframe of two to three weeks for the implementation of these actions.
Finance Minister Ishaq Dar is expected to hold consultations in the coming weeks to evolve consensus on the required actions for the revival of the IMF programme.
It is understood that the IMF has shared a list of prerequisite actions with Pakistani authorities. These actions are necessary for the IMF to consider moving forward with the loan programme.
Some of the key actions that have been identified include:
– Finalising an agreement with the power sector on a sustainable financial plan
– Introducing further measures to improve tax administration and broaden the tax base
– Strengthening the Reserve Bank of Pakistan’s (RBP) framework for managing its currency
– Improving transparency and accountability in the use of development spending
– Taking action to improve the health of the banking sector
The Pakistani government will need to take these actions in order to improve the country’s economic situation and revive the IMF loan programme.
The International Monetary Fund (IMF) has asked Pakistan to take measures to meet its demands within three weeks in order to revive a loan programme.
The IMF has raised serious reservations against the recently announced package for the agriculture sector and subsidies for concessional electricity to export-oriented sectors.
Esther Perez Ruiz, IMFs Resident Representative for Pakistan, has asked the country to review monetary and exchange rate policies. According to Ruiz, the country needs to re-examine the targets for fiscal discipline and deficit control and fix multiple economic indicators.
The IMF has asked for detailed expenditure and revenue figures, including those for flood response up to June 30, 2023, when the programme ends.
The Pakistani government has announced a package of Rs 1800 billion for the agriculture sector and Rs 110 billion subsidies for concessional electricity to export-oriented sectors.
The IMF has asked the Pakistan government to take measures to meet its demands within three weeks in order to revive the loan programme.