There is a possibility of an important breakthrough in the negotiations between Pakistan and the International Monetary Fund (IMF) today, according to the Ministry of Finance, before the approval of the budget by the Parliament for the staff level agreement between Pakistan and the IMF for the next financial year.
The framework is likely to be revised and significant amendments are expected in the budget for the next financial year to meet the IMF’s requirements. Sources say that the State Bank of Pakistan has lifted restrictions on imports and has fulfilled the IMF’s condition by allowing the supply of foreign exchange for the clearance of containers.
According to sources, Pakistan and the IMF are making efforts to reach an agreement on the budget framework.
The finalization of the framework will pave the way for approval of the annual budget. Under the revised framework, FBR’s tax targets are likely to be raised and exchequer expenditure reduced. Pakistan The revised budget estimates for the next fiscal year have been shared with the IMF.
The ongoing $6.7 billion program of the IMF’s Expanded Fund Facility is scheduled to expire on June 30, 2023.
The IMF had highlighted three major problems, including the failure to raise taxes in the budget framework, eliminate tax expenditures, tax amnesty schemes, bridging the economic gap from abroad and fixing exchange rates based on third markets. Is.
