Pakistan has made progress in ongoing negotiations with the International Monetary Fund (IMF) for the release of the fifth $1.2 billion tranche under the country’s loan programme, with the government avoiding the need for a mini-budget or new taxes this fiscal year, according to sources.
According to the private media outlet, negotiations between Pakistan and the IMF are underway for the release of the fifth tranche worth $1.2 billion.
Sources said Pakistan had achieved a major breakthrough in the talks, with the threat of a mini-budget now averted. They added that there was also no need for the government to introduce new taxes during the current fiscal year.
The sources said the IMF was satisfied with Prime Minister Shehbaz Sharif’s economic policies and their implementation. The Fund also appreciated the Federal Board of Revenue’s (FBR) performance from July to September and expressed satisfaction with Finance Minister Muhammad Aurangzeb’s economic management.
According to the sources, the FBR achieved its tax collection target for the July-September period, helping satisfy the IMF. Growth in tax revenues means additional tax measures will not be required, they added.
During the negotiations, the FBR assured the IMF that Pakistan would achieve its tax collection target for the current fiscal year. The government also assured the Fund that a new National Finance Commission (NFC) Award would be introduced after December.
Sources said the IMF was also satisfied with Pakistan’s economic growth and efforts to control the fiscal deficit despite the ongoing crisis in the Middle East.
The latest development comes as Pakistan seeks to complete the review of its IMF programme and secure the release of the $1.2 billion tranche.
