The Finance Ministry has initiated groundwork to secure the next $1.1 billion tranche of the $7 billion bailout program of the International Monetary Fund (IMF).

Pakistan is aiming to meet the strict conditions of the Fund for the first economic review, with an IMF mission scheduled to visit the country in early 2025, sources revealed.

According to official documents, the government is committed to fulfilling the conditions of the IMF’s first economic review. A key target is achieving tax collection of Rs6,009 billion by December 2024 and Rs9,168 billion by March 2025. Additionally, no new tax amnesties or concessions will be granted to any business sector. 

The Finance Ministry says the government will amend the Civil Servants Act by February 2025 to mandate the declaration of assets by officials and their families. Tax collection on provincial agricultural income will also commence, and risk management systems will be implemented in major tax units in Islamabad, Karachi, and Lahore.

Further reforms include:

• A 5% duty on fertilizers and pesticides in the next fiscal budget.
• An increase of Rs3,000 in the stipend for Benazir Income Support Programme (BISP) beneficiaries, with future adjustments tied to inflation.
• Publishing a Governance and Corruption Assessment Report by July 2025.

The energy sector liabilities will be capped at Rs417 billion, while tax refunds will be limited to Rs24 billion. Gas supplies to captive power plants will end by January 2025, and measures for the privatisation of two power distribution companies (DISCOs) will be completed.

The government has pledged not to announce supplementary grants without parliamentary approval and ensure zero credit provisions from the State Bank of Pakistan. Efforts for gradual right-sizing in public institutions are also underway.

Meanwhile, the Finance Ministry has reiterated the government’s strict commitment to macroeconomic reforms and that the IMF program is being implemented during a Finance Committee meeting. A spokesperson for the ministry assured that the 37-month IMF program would be completed successfully.

"The government is committed to implementing the targets set by the IMF," the spokesperson said. 

Pakistan is also targeting an increase in foreign exchange reserves to cover three months of imports, a crucial condition for sustaining the bailout program.