Negotiations between Pakistan and the International Monetary Fund (IMF) regarding economic matters have concluded successfully.
An agreement at the staff level has been reached, paving the way for Pakistan to receive a $1.1 billion installment from the IMF next month, pending approval from the Executive Board. The $3 billion standby arrangement will conclude upon the receipt of the final installment.
Formal negotiations for a loan program are slated to commence next month, with the Federal Board of Revenue (FBR) devising a tailored revenue plan. Tax reforms are also on the horizon, with plans to extend fixed tax schemes to approximately 900,000 shopkeepers through the Finance Bill, particularly focusing on Islamabad and the four provincial capitals.
Additionally, a new framework for the Benazir Income Support Program’s expenditure is in the works, with costs to be shared between the Federation and the Provinces. Addressing climate change challenges, a revised strategy for recovery costs and joint efforts in reconstructing flood-affected districts are also being developed.
