pakistan begins second tranche negotiations with imf
Islamabad, November 2, 2023 – Pakistan has initiated Discussions with the International Monetary Fund (IMF) to Secure the Next installment of $700 Million as Reported by ARY News. An IMF Review Mission arrived in Pakistan to assess the Country’s Economic Performance for the First three months of the Current fiscal Year, Spanning from July to September.
The Review Mission headed by Nathan Porter the IMF’s Country Chief Will evaluate Pakistan’s adherence to the Conditions outlined in the $3 Billion standby arrangement (SBA). These Negotiations are Scheduled for November.
As Sources from the Finance ministry Disclosed Pakistan has met all the Prerequisites Stipulated by the IMF for the upcoming Review. It is likely that Pakistan will increase the levy on Diesel from Rs55 to Rs60 per liter Before the Negotiations with the international lender. Gas Rates have already been Raised aligning with IMF Conditions.
Furthermore Pakistan Demonstrates Confidence in its ability to Satisfy IMF Review Criteria Primarily met during the first Quarter of FY2023-24. The Federal Board of Revenue (FBR) Successfully Collected Rs2,041 Billion in taxes from July to September Surpassing the set Target of Rs1,978 Billion without the need for a tax amnesty Scheme. The Government also managed to collect Rs222 Billion in Petroleum levy during the same Period, effectively Reducing Circular debts within the Electricity and Gas Sectors.
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To fulfill IMF Conditions Pakistan has increased the Basic Eectricity tariff by Rs7.50 Per unit. Additionally a Substantial Gas tariff increase of nearly 200 Percent will come into effect on November 1.
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These Negotiations represent a Significant step in Pakistan’s financial and economic Planning Demonstrating the nation’s Commitment to meeting its IMF Obligations.