Pakistan is set to undergo its first review of the International Monetary Fund’s (IMF) loan program’s $3 billion stand-by arrangement (SBA), with a second tranche of $700 million in contention for disbursement.
IMF Mission To Visit Pakistan on 2nd November
According to official sources within the Finance Ministry, an IMF delegation led by Nathan Porter is scheduled to arrive in Pakistan on November 2. The review period is expected to last until November 16.
The $3 billion loan program has prompted a slew of measures and reforms in Pakistan, and the IMF will now assess the country’s performance during the first three months of the program.
Review Program
The review will be conducted in two stages. According to sources familiar with the situation, technical discussions will begin with an examination of economic data.
Following that, the second phase will include policy-level discussions to determine new terms and conditions.
Pakistan has already implemented a series of stringent measures as part of the program, including an increase in electricity and gas rates in accordance with the loan agreement.
Additionally, efforts are reportedly underway to reduce government spending and advance the privatization program, indicating the country’s commitment to meeting the IMF’s conditions.
FBR Tax Collection
The Federal Board of Revenue (FBR) also exceeded its target for tax collection during the first quarter of the current fiscal year, which is seen as a positive indicator of Pakistan’s efforts to meet its fiscal responsibilities under the IMF program.
If the international lender is pleased with Pakistan’s performance during the review, a second tranche of $700 million is expected.
The review’s successful conclusion will undoubtedly have far-reaching consequences for the country’s economic stability and ability to secure continued financial support from the crisis lender.
To read our blog on “IMF Mission plans to visit Pakistan on November 2nd 2023,” click here.
