The International Monetary Fund (IMF) is set to send a delegation to Pakistan in the last week of October 2023 to review the country's economic performance in the first three months of the fiscal year. The IMF mission will also hold discussions with the caretaker government regarding reforms in various sectors, including taxes and energy, according to sources from the Ministry of Finance.
In addition to the review, there will be discussions on a plan for expenditure reduction. The plan includes measures such as freezing allowances and pensions, as well as suspending officer recruitment. The Pakistani government may also be compelled to increase gas prices due to demands from the IMF.
Once the economic review is successfully completed, Pakistan is expected to receive the next installment of $700 million from the IMF, following approval by its board. This follows a transfer of $1.2 billion by the Washington-based global lender in July 2023, as part of a $3 billion bailout program intended to support the government's efforts to stabilize the country's struggling economy.
The upcoming review and potential financial assistance come after an agreement reached between Pakistan and the IMF on June 29. The agreement was for a $3 billion stand-by arrangement, which provided much-needed relief to Pakistan as it grappled with an acute balance of payments crisis and falling foreign exchange reserves. The deal was finalized just hours before the expiration of their existing agreement with the IMF on June 30.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.