Pakistan Gets Nearer to $1.1 Billion IMF Final Tranche

Pakistan has made big progress in meeting the requirements set by the International Monetary Fund (IMF) to get the $1.1 billion IMF Final Tranche of the $3 billion Standby Arrangement (SBA).

The country has taken important steps to follow the rules set by the IMF, showing a great achievement in its plan for economic reform. These efforts show Pakistan’s dedication to managing money well and making changes to how things work, which are really important for keeping the economy steady and helping it grow in a way that lasts.

Pakistan has completed 25 of the 26 objectives that the IMF set during the second Economic Review of its $3 billion SBA, according to sources from the Finance Ministry. According to ministry officials, the Finance Ministry has also provided the IMF with a thorough assessment on the state of target implementation.

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The report highlights several achievements, including sticking to conditions like not borrowing from the State Bank of Pakistan and paying external debts on time. Notably, outstanding payments in the power sector, like taxes and refunds, have been cleared promptly, showing Pakistan’s dedication to meeting its financial responsibilities.

According to sources from the Federal Board of Revenue (FBR), Pakistan has completely followed requirements for tax exemptions and amnesty. The stipulated exchange rate of 1.25 percent between Inter-bank and open market currency exchanges is still being upheld.

Furthermore, the timely execution of conditions concerning adjusting electricity rates and raising gas prices has been acknowledged. Sources mention that the Finance Ministry’s report on achieving targets will be reviewed before the IMF mission arrives in Islamabad.

Even with this tremendous success, there are still certain obstacles to overcome, particularly in regards to amending the regulations that control state-owned businesses. The National Highway Authority, Pakistan Post and Pakistan Broadcasting Corporation have not yet had their laws altered to comply with IMF recommendations.

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In the future, it is anticipated that an IMF delegation will visit Pakistan following the formation of the new administration for review and discussion on IMF Final Tranche settlement.