Pakistan 'completes' IMF conditions for next review

ISLAMABAD: Pakistan has completed all conditions of the International Monetary Fund (IMF) for the next review talks under the $3 billion standby arrangement (SBA), scheduled to take place in November, sources within the finance ministry told ARY News on Tuesday. 

The IMF team is expected to arrive in Islamabad on November 2 for the talks before the release of the next loan installment of a loan to Pakistan.

Sources said, Pakistan is likely to jack up levy on diesel from Rs55 to Rs60 per litre before the talks with the international lender, while the gas rates have already been raised on the IMF condition.

Pakistan is confident of the completion of the IMF review as conditions set for the first quarter of FY2023-24 have been met by Islamabad, the sources said.

The Federal Board of Revenue (FBR) collected tax of Rs2,041 billion from July-September in 2023-24 against the set target of Rs1,978 billion, the sources said, adding that no tax amnesty scheme was released by the country’s supreme tax collection body.

Read more: IMF demand: Provinces fall short in meeting surplus budget target

Furthermore, the sources said the government of Pakistan collected Rs222 billion on account of petroleum levy from July to September. The circular debts in the electricity and gas sector have been curtailed.

To meet the conditions of IMF, Pakistan has also jacked up the basic electricity tariff by Rs7.50/ unit, while an almost 200 per cent increase in gas tariff is also notified from November 1

The ceiling on net government budgetary borrowing from the SBP stood at Rs4,078 billion for the end of September 2023 as the Pakistan government’s borrowing from the central bank remained zero.