Pakistan inches closer to securing the final installment of $1.1 billion from the International Monetary Fund (IMF) as the caretaker government makes significant progress in meeting its set targets.
Out of the 26 criteria established by the IMF for the second economic review, the Ministry of Finance confirms that 25 have been successfully fulfilled, in a report that the caretaker government has sent to the global lender.
According to sources within the Ministry of Finance, a comprehensive report detailing the implementation of the IMF targets has been submitted to the international body. However, one outstanding requirement remains unmet, pertaining to the amendment of laws governing government-owned institutions.
Notably, laws governing entities such as the National Highway Authority (NHA), Pakistan Post, and Pakistan Broadcasting Corporation have not yet been amended, posing a challenge to meeting all stipulated conditions.
Nevertheless, the caretaker government has demonstrated diligence in adhering to several critical conditions, including refraining from borrowing from the State Bank of Pakistan and ensuring timely payment of external debts. Additionally, efforts to clear arrears in the power sector, including tax dues and refund payments, have been promptly completed on time.
Furthermore, measures to eliminate tax exemptions and amnesty schemes have been fully implemented, as confirmed by the Federal Board of Revenue (FBR). The ongoing enforcement of a 1.25% exchange rate in interbank and open market currency transactions reflects the government's commitment to maintaining stability in the financial sector.
Key reforms in the energy sector, such as the timely rebasing of electricity rates and gas prices, have been successfully implemented in accordance with IMF directives.
In light of these developments, the IMF mission is slated to review the comprehensive report on the implementation of targets before its scheduled visit to Pakistan. However, the mission's visit is contingent upon the formation of the new government, indicating that further progress and collaboration will be required to ensure continued economic stability and growth in Pakistan.
