Pakistan Fulfills All IMF Conditions Ahead of Review Talks

Pakistan has successfully fulfilled all the conditions set by the International Monetary Fund (IMF) for the upcoming review talks under the $3 billion standby arrangement (SBA), according to sources within the finance ministry. The IMF team is expected to arrive in Islamabad on November 2 for the talks, which will precede the release of the next loan installment.

In preparation for these talks, Pakistan has reportedly increased the levy on diesel from Rs55 to Rs60 per litre. Additionally, gas rates have already been raised as per IMF’s conditions. These measures are part of Pakistan’s efforts to meet the IMF’s requirements for the first quarter of FY2023-24.

The Federal Board of Revenue (FBR) has collected a tax of Rs2,041 billion from July-September in 2023-24, surpassing the set target of Rs1,978 billion. Furthermore, the government has collected Rs222 billion on account of petroleum levy from July to September.

To further meet IMF’s conditions, Pakistan has increased the basic electricity tariff by Rs7.50/unit and announced an almost 200% increase in gas tariff effective from November 1. The circular debts in the electricity and gas sector have also been curtailed.

The ceiling on net government budgetary borrowing from the SBP stood at Rs4,078 billion for the end of September 2023 as Pakistan government’s borrowing from the central bank remained zero.

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