An agreement in principle has been struck with the International Monetary Fund (IMF) for an Rs300 billion adjustment, with Rs215 billion in taxes and Rs85 billion in spending cuts.
According to former finance minister Dr. Hafeez Pasha, if the rupee-dollar parity is permitted to be market-based, the FBR’s tax target will be met.
Pasha stated that a 100 basis point hike in the policy rate by the State Bank of Pakistan (SBP) is also part of the agreement.
Former Ministry of Finance advisor Dr Ashfaq Hassan Khan told Business Recorder that all necessary steps had been done to finish the evaluation. The sum of the 9th review would be transferred to Pakistan after the staff-level agreement is established and all of its conditions are completed.
The IMF Executive Board has not scheduled a meeting for Pakistan’s 9th review until July 6, 2023.
According to the IMF Executive Board calendar, the next sessions are slated for June 27, 28, and 29, 2023, followed by meetings on July 5 and 6, 2023; however, Pakistan is not on the agenda, though it could be added if the ninth review is deemed successful.