The International Monetary Fund has demanded that the State Bank of Pakistan’s autonomy and independence be further secured, making it clear that there will be no violation of the agreement during the program, agreed by the IMF with Pakistan.
Release details of the agreement, in which the International Monetary Fund (IMF) says Pakistan must further secure the autonomy and independence of the State Bank, which Pakistan will implement.
The report states that Pakistan will have to tighten the monetary policy and follow the standby program, while in the program, Pakistan will not violate the agreement.
The IMF said that the State Bank must be given the freedom to act on monetary policy. The IMF says that Pakistan will be obliged to take the additional steps to implement the Standby Arrangement Program, to take new steps.
And the IMF will be consulted for changes in policies while Pakistan has assured the International Monetary Fund (IMF) of taxing agriculture and construction sectors and also assured that no new tax breaks will be given. Will not get.
According to the report, the government will not issue a new tax amnesty scheme or issue tax exemptions or tax incentives under the agreement. Pakistan has assured the IMF to reduce energy subsidies and increase revenue, besides lifting import restrictions.
While he has also promised to reduce the salary and pension expenses and increase the fund of Benazir Income Support Program.
According to the agreement, Pakistan has told the IMF that the current fiscal year primary surplus will be kept at 401 billion rupees, the central and provincial governments will increase the funds of the welfare sector, the currency exchange rate will be kept according to the market, the dollar will open.
And 1 in interbank rate. The difference will not be more than 25 percent while Pakistan has assured that the monitoring report of the government institutions will be issued and the quarterly report of the National Accounts Committee will be issued.
IMF says that Pakistan has to tighten the monetary policy, follow the standby program, give surplus budget to the provinces to reduce the fiscal deficit, take serious steps to increase the tax revenue, petroleum in this financial year.
859 billion rupees will be received in the form of levy, which will be 1000 billion next year and this target will reach 1134 billion rupees by 2025-26. This year, there is a possibility of collecting 2116 billion rupees in terms of non-tax revenue.
According to the details released by the IMF, Pakistan’s defense budget this year will be 1804 billion rupees, next fiscal year it will be 2093 billion, restrictions on imports will be removed, formal and informal methods will not be used to control the exchange rate.
will be done, The government will not issue any new tax amnesty scheme or tax exemptions or tax concessions under the agreement. According to the agreement, the notification of increase in electricity prices will be issued in 2024, while the law on improvement of governance in public institutions will be activated and the quarterly report of national accounts will be issued.
In the agreement issued by the IMF, Pakistan has assured that after the Geneva conference the focus is on debt rollover, restrictions on imports will be removed until the end of the program. Serious measures will have to be taken to increase tax revenue, the government will not take fresh loans from the State Bank, efforts will be made to resolve tax refund issues in the FBR immediately and clear the arrears of the power sector.
According to the agreement, the rate of inflation in Pakistan is likely to be 25.9 percent while the rate of economic growth is only 2. May be 5 percent. The unemployment rate could be 8 percent in FY 2024, up from 8.5 percent last year and 6.2 percent in Pakistan in 2022. Similarly, the financial deficit is 7.5 percent of the economy and the volume of debt is 74. 9 percent will remain.
The IMF will review Pakistan’s economy in November 2023 and February 2024, but under the agreement, Pakistan must first perform in terms of its commitments and conditions. According to the agreement, Pakistan will provide timely and authentic data to the IMF, the IMF will continue to monitor the implementation of Pakistan’s program while the State Bank will provide an audit report, while the State Bank’s external auditors are authorized to consult with the IMF. will go According to the agreement, Pakistan has assured to stick to the policy of transparency. While in the program, Pakistan International will not stop the payments and will increase the budget on the education and health sectors. The sales tax refund has reached 183 billion and the income tax refund has reached 215 billion. Due to the electricity and gas tariff differential, the revolving debt is increasing.
The IMF says that Pakistan will receive 87 billion 42 million dollars in the next three years Facing external financial needs, 28 billion 36 million dollars in this financial year, 27 billion 16 billion dollars in the next financial year and 31 billion 89 billion dollars in 2025-26 will be required. According to the agreement, IMF will monitor all the measures. Data will be taken from State Bank, FBR, Bureau of Statistics. According to the IMF, tax revenue is estimated to reach 11 thousand 21 billion this fiscal year, which is expected to reach 13 thousand 93 billion rupees in the next financial year and 14 thousand 738 billion in the fiscal year 2025-26.
