Pakistan and IMF agree to revive loan program

ISLAMABAD:

The chances of revival of the International Monetary Fund (IMF) loan program for Pakistan have brightened after what the finance ministry terms a successful round of negotiations with the IMF mission.

IMF’s Resident Representative to Pakistan Esther Perez Ruiz told media that major progress was made with on budget targets for the next fiscal year during discussion with the Pakistan authorities.

“Discussion between the IMF staff and the authorities on policies to strengthen macroeconomic stability in the coming year continue,” said Ruiz.

Discussion between the IMF staff mission and the Pakistani economic team, led by Finance Minister Miftah Ismail, were held via video link.

It is pertain to mention that on June 10, the IMF had expressed reservations about the budget 2022-23. Officials of the Ministry of Finance tried to address the reservations after which major progress was made. Agreement on the targets of the budget set by the IMF has also been made.

The Fund has instead urged the government to increase its tax collection from the salaried person by Rs125 billion.