Finance Minister Ishaq Dar departed for the United States to attend the annual meetings of the World Bank and the International Monetary Fund (IMF).
On Tuesday, according to media reports, Ishaq Dar will formally ask senior IMF officials to change the macroeconomic framework for the current fiscal year 2022–23 by lowering GDP growth, rising inflation, and increasing the twin deficits such as the budget deficit and current account deficit during meetings from October 10–16.
Pakistan will ask the IMF to relax the conditions of the Extended Fund Facility (EFF), particularly by freezing the fuel price adjustment of electricity and the petroleum development levy on POL products for the upcoming few months in order to provide some relief to the people who are suffering from inflation.
Pakistan will also ask for a relaxation of the budget deficit objective for the current fiscal year since heavy flooding could jeopardize its efforts to raise revenue and put more strain on its ability to control spending.
According to the IMF program, the government has set a budget deficit target for the current fiscal year of 4.9% and is projecting a revenue surplus of Rs153 billion through the end of June 2023.
Following devastating floods that required over $30 billion in construction costs for Pakistan’s faltering economy, a request to amend the macroeconomic framework will be submitted for the current fiscal year.
The IMF/World Bank’s annual meeting will be held in Washington DC, from October 10 to October 16.