Pakistan and the International Monetary Fund (IMF) engaged in detailed negotiations in a final attempt to complete the pending review, according to statements made by a government official during a parliamentary session. The discussions aim to address the fiscal challenges faced by Pakistan.

Fiscal Measures Planned for the Upcoming Year

In order to address the fiscal deficit, Pakistan plans to raise an additional 215 billion rupees ($752 million) through new taxes and reduce spending by 85 billion rupees ($300 million) in the upcoming fiscal year. These measures, along with other initiatives, are expected to contribute to the fiscal consolidation efforts.

Prime Minister Holds Meeting with IMF Managing Director

Prime Minister Shehbaz Sharif recently met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris. The meeting took place ahead of the imminent expiration of the IMF’s Extended Fund Facility, which was agreed upon in 2019 and is set to expire on June 30.

Deadline Approaching for Funding Disbursement

As part of the facility’s ninth review, Pakistan has been striving to secure $1.1 billion of funding that has been delayed since November. With approximately a week remaining until the expiration of the agreement, Pakistan aims to resolve the outstanding issues and secure the necessary funds from the IMF.

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Transitioning towards Fiscal Stability

Pakistan’s engagement with the IMF and the proposed fiscal measures reflect the country’s commitment to achieving fiscal stability and addressing its economic challenges. By implementing measures to increase revenue and reduce expenditure, Pakistan aims to improve its fiscal position and pave the way for sustainable economic growth.