Pakistan assures IMF of taking anti-inflationary measures

ISLAMABAD: Pakistan has assured the International Monetary Fund (IMF) of taking anti-inflationary measures, ARY News reported citing sources.

According to sources, the caretaker government of Pakistan has convinced the IMF mission to not impose additional tax.

Sources said that subsidies will continue for the unprivileged class and assured IMF that the government will strictly implement the plan to control the hike in inflation.

The caretaker government also presented the joint plan of federal and provincial governments to curb the soaring inflation, sources said.

Read more: Fin Min says ‘Pakistan assured IMF of controlling budget deficit’

Furthermore, IMF was briefed on controlling the interest rate to limit the hike in inflation, sources added.

Caretaker Finance Minister Dr Shamshad Akhtar on Monday said that Pakistan has assured the IMF of controlling budget deficit by cutting expenditures.

While informally talking to ARY News, Finance Minister Shamshad Akhtar vowed that tax burden would not be broadened on people and the IMF’s tax target would remain unchanged at Rs9,415 billion.

“The federal government would adopt austerity policy to cut expenditures. We assured IMF of controlling the budget deficit by reducing our expenditures. The policy-level talks between Pakistan and IMF are progressing in a positive way. The finance secretary is holding policy-level talks with the IMF mission.”

She said that IMF showed complete satisfaction on the caretaker government’s steps including Pakistan’s development spending and Benazir Income Support Programme (BISP).

The caretaker government will not impose “any new taxes” as the officials have convinced the IMF mission, visiting Pakistan, sources said.

Pakistan is operating under a caretaker government after an IMF loan programme, approved in July, helped avert a sovereign debt default.

Under the $3 billion standby arrangement (SBA), Pakistan received $1.2 billion from the IMF as the first tranche in July.

Last week, an IMF mission kicked off its review for the second loan tranche, which is expected to continue till Dec 15. A successful review would unlock $710 million for the country in December.