IMF team to review Pakistan’s economic situation by late October: Report
IMF delegation to review Pakistan's economic performance; next installment of $700m pending approval.
The Washington-based financial body, International Monetary Fund (IMF), will send its delegation to cash-strapped Pakistan to review the country's economic performance in the first three months of the current fiscal year, according to a report published by the news agency PTI.
Quoting sources in the Ministry of Finance, The Express Tribune newspaper said that during the meeting with the International Monetary Fund (IMF) mission, the caretaker government will also discuss reforms in various sectors, including taxes and energy.
The report said once the economic review is successfully completed, Pakistan will receive the next installment of USD 700 million from the IMF after its board's approval.
The Washington-based global lender transferred USD 1.2 billion to the cash-strapped country in July, as part of the USD 3 billion bailout program for nine months to support the government’s efforts to stabilize the country's ailing economy, PTI reported.
Although essentially a bridge loan, it offered much respite to Pakistan, which was battling an acute balance of payments crisis and falling foreign exchange reserves, the report said.
Meanwhile, it has also been reported that a plan for expenditure reduction is prepared, and discussions will be held on the plan to reduce expenses, including freezing allowances, and pensions, and suspending officer recruitment.
The government is also likely to be compelled to increase gas prices on IMF demands. Pakistan’s economy has been in a free fall mode for the last many years, bringing untold pressure on the poor masses in the form of unchecked inflation.
The country's inflation rose for the first time in four months after the government raised fuel prices to meet the IMF's conditions for an ongoing $3 billion bailout program.
Consumer prices jumped 31.44% in September from a year earlier. The reading exceeds the median estimate for a 30.95% increase in a Bloomberg survey and 27.4% notched in August.
Pakistan's caretaker government raised fuel costs on surging global prices and plans to hike gas prices as part of IMF conditions to continue a bailout program that started in July. The moves are likely to increase living costs and may spark protests again among Pakistanis who are feeling the pinch.
(With PTI inputs)
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First Published:3 Oct 2023, 01:13 PM IST
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