IMF Urges Pakistan to Revise Budgetary Framework for 2023-24 for Staff-Level Agreement

(CTN News) – The International Monetary Fund (IMF) has urged Pakistan to revise its budgetary framework for the fiscal year 2023-24 to reach a staff-level agreement, as The News International, an English-language newspaper in Pakistan, reports. The IMF emphasized that without changes in the budget, an agreement with the financial body based in Washington cannot be achieved.

Pakistan and the IMF are negotiating to establish a broader agreement on the budgetary framework. If successful, this agreement could lead to the approval of the revised budget for 2023-24. The proposed revisions include increasing the tax collection target of the Federal Board of Revenue (FBR) and reducing expenditures.

Pakistan Aims to Meet IMF’s Loan Conditions through Revised Budgetary Estimates

During recent virtual talks between Pakistani officials and the IMF held from Islamabad and Washington, the revised budgetary estimates for the next fiscal year were shared with the IMF. However, a broader agreement has not yet been reached.

Following Prime Minister Shehbaz Sharif’s meeting with the Managing Director of the IMF in Paris, Pakistan, the IMF held two virtual talks within the past 24 hours, aiming to progress towards a staff-level agreement.

While the revised budgetary estimates were shared with the IMF review mission, how much consensus can be reached on major issues between the two sides remains to be seen.

Pakistan’s Finance Minister, Ishaq Dar, stated that the country aims to generate ₹215 billion through taxes in a final attempt to meet the loan conditions set by the IMF.

Pakistan Strives to Fulfill Conditions for $6 Billion IMF Loan

IMF Managing Director Kristalina Georgieva recently appealed to Prime Minister Sharif, urging him to address policy disagreements among the staff of the global lender before obtaining a crucial loan for economic stabilization.

The IMF and Pakistan have signed a $6 billion loan deal, subject to certain conditions. However, the complete reimbursement is yet to be finalized due to the IMF’s insistence on Pakistan fulfilling all necessary formalities.