ISLAMABAD: The International Monetary Fund (IMF) and Pakistan staff-level agreement is delayed and is likely to be completed in March.
Despite Islamabad satisfying the majority of the IMF’s requirements, a staff-level agreement with Pakistan on the ninth review of a $6 billion loan facility that opens the door for the release of the eagerly expected $1.17 billion is facing a delay.
The staff-level deal with the IMF is now likely to be inked in March, according to sources with knowledge of the issue.
Pakistan has complied with a number of IMF requirements in order for the loan program to resume. Also, the Monetary Policy Committee of the State Bank of Pakistan is slated to convene on March 2 instead of March 16 to discuss the need for an increase in interest rates.
According to the sources, the SBP’s decision will be communicated to the IMF.
It is important to note that the Finance (Supplementary) Bill, 2023, intended to reform specific laws relating to taxes and levies, was enacted by the National Assembly on Monday. Moreover, to reduce the fiscal deficit, the bill proposes to impose new taxes worth Rs 170 billion.
However, Details indicate that the Fund has responded to the draught Memorandum of Economic and Financial Policy (MEFP) that Ministry of Finance and Revenue officials sent.
