IMF mission has arrived in Pakistan for negotiations regarding a loan.
Sources from the Ministry of Finance indicate that the IMF team will assess Pakistan’s economic performance and engage in discussions with pertinent ministries.
Sources indicated that the government has already informed the delegation of its economic objectives and accomplishments during the first quarter of the fiscal year. Principal topics of debate encompass revenue collection, with Pakistan achieving 96.6% of its tax target from July to September.
The IMF mission is anticipated to confer with Minister of State for Finance Muhammad Aurangzeb, the Chairman of the FBR, and officials from the State Bank to deliberate on the nation’s economic condition and prospective strategies.
Sources previously said that during the visit, IMF and Pakistani officials will deliberate on new concessional loans to facilitate climate change activities, as well as debate province budgets and their allocation for climate change measures.
Sources indicated that the group will evaluate the current IMF loan program and deliver a first briefing, with discussions perhaps focusing on Pakistan’s tax revenue and anticipated shortages from July to September.
Pakistan has received the initial installment of the IMF loan.
The government of Pakistan requested an additional $2 billion from the IMF to mitigate the effects of climate change.
This event followed the IMF’s delay in approving Pakistan’s original request for climate finance, according to sources.
Sources indicated that Pakistan implemented measures to enhance fiscal sustainability and generate revenue, including the approval of the FY24 budget, which targets a primary surplus of around 0.4 percent of GDP. The government has pledged to maintain a market-driven currency rate and to mitigate inflation.
On September 27, Pakistan solicited an additional $1.5 billion loan from the IMF to address the effects of climate change within the nation.
The financing would bolster Pakistan’s Climate Resilience and Sustainability Facility, which seeks to enhance economic stability and sustainable development in the nation.
The International Monetary Fund (IMF) Executive Board approved Pakistan’s 37-month Extended Fund Facility (EFF) arrangement of approximately US$7 billion on September 25.