Pakistan has made significant strides towards meeting the International Monetary Fund’s (IMF) conditions to unlock the final tranche of $1.1 billion from its $3 billion Standby Arrangement (SBA). According to sources in the Finance Ministry speaking to Pakistan has successfully achieved 25 out of the 26 targets outlined by the IMF in the second Economic Review of the SBA.
The Ministry of Finance has submitted a comprehensive status report on target implementation to the IMF, as confirmed by ministry sources. The report highlights accomplishments such as refraining from borrowing from the State Bank of Pakistan and ensuring timely payments of external obligations. Notably, the clearance of arrears in the power sector, including tax dues and refunds, underscores Pakistan’s dedication to meeting financial commitments, as per the sources.
Sources from the Federal Board of Revenue (FBR) stated that Pakistan has fully met requirements regarding tax exemptions and amnesty. The prescribed exchange rate of 1.25 percent between the interbank and open market currency exchange has been maintained.
The timely execution of conditions related to the recalibration of electricity rates and the adjustment of gas prices has also been acknowledged. Sources mentioned that the review of the Finance Ministry’s report on target implementation will be completed prior to the arrival of an IMF mission in Islamabad. They added that despite significant progress, challenges persist, particularly regarding the amendment of laws governing state-owned entities. Laws pertaining to entities such as the National Highway Authority, Pakistan Post, and Pakistan Broadcasting Corporation have yet to be amended in accordance with IMF requirements.
Looking forward, it is anticipated that an IMF mission will visit Pakistan following the formation of the new government.
