The International Monetary Fund (IMF) said that if Pakistani authorities wish to restart the stalled loan program, they must take the listed precondition actions within the next three weeks.
The IMF advised the Pakistani government that “all necessary efforts” must now be taken.
To facilitate a staff-level agreement and the release of a $1 billion tranche under the Extended Fund Facility (EFF), two to three weeks have been allotted for the implementation of all necessary steps.
Finance Minister Ishaq Dar is scheduled to meet with his core economic team in a few days to discuss the best course of action for reviving the IMF program.
The government would have to come up with a workable plan to eliminate the monster of the circular debt piled up in both the power and gas sectors up to a staggering sum of Rs 4 trillion because it is possible that the restoration of the IMF program through patchwork will not succeed.
According to local media reports, the IMF has agreed to provide an Rs340 billion adjustment for the budget deficit increase brought on by expenses connected to the floods in the current fiscal year.
The Fund has also urged Pakistan to take additional steps to close the huge gap preventing the achievement of the FBR’s envisioned goal. The FBR’s revenue collection goal of Rs7,470 billion for the current fiscal year may not be met, according to the IMF’s assessment.
The IMF also voiced concern over the fact that there were only 2.913 million income tax filers as of the end of the first quarter compared to 3.4 million in the previous fiscal year.
According to FBR high-ups, since businesses must file their corporate taxes by December 31, 2022, the number of filers may increase even more.
The government could impose additional customs taxes and offer another tax amnesty program that applies to the combined districts of FATA/PATA as further taxation measures.