The International Monetary Fund (IMF) has officially confirmed Pakistan’s request for a new loan program following extensive discussions with Islamabad. Led by Mission Chief Nathan Porter, the IMF delegation engaged in negotiations from May 13 to May 23 to assess Pakistan’s economic progress.
The statement emphasizes the Pakistani government’s commitment to enhancing revenue collection, particularly from privileged sectors, to ensure fair tax practices. It underscores the importance of sustainable economic growth and stabilization, with the IMF expressing readiness to collaborate closely with Pakistan through the Extended Fund Facility (EFF) program.
Pakistan’s successful fulfillment of targets set under the Standby Arrangement Agreement is acknowledged, laying a foundation for the upcoming new loan program. The IMF stresses the urgency of broadening the tax base to foster economic growth and stability while advocating for appropriate policy and exchange rate measures to manage inflation.
Energy sector reforms are deemed crucial, with a focus on reducing production costs, alongside a call for stringent monetary policies until inflation is subdued. Furthermore, the IMF highlights the imperative of enhancing the performance of state-owned enterprises, signaling privatization as a means to improve efficiency.