IMF: Pakistan’s budget requires tougher steps to reach targets

ISLAMABAD: The International Monetary Fund’s resident representative in Islamabad said on Monday that Pakistan’s budget for the fiscal year 2022-23 would require additional measures to meet the primary goals of the country’s IMF-supported programme.

Government officials released an Rs9.5 trillion budget for 2022-23 on Friday in an effort to persuade the International Monetary Fund (IMF) to resume much-needed bailout payments, which are currently suspended.

As Esther Perez Ruiz told Reuters, “our early assessment is that more steps will be required to enhance the budget and put it in line with major programme goals.”.

Finance Minister Miftah Ismail told Reuters on Saturday that the International Monetary Fund highlighted worries about the budget statistics, including fuel subsidies, a growing current account deficit and a need for additional direct taxes.

His administration, Finance Minister Miftah Ismail continued, was certain that it could change the budget to attract the IMF’s attention and was optimistic about a positive assessment occurring this month.

Talks with the authorities are continuing to get additional information about some income and expenditure items so that they can make a complete evaluation.

It was said that the fund will continue to assist the government’s efforts and the execution of macroeconomic policies.

Despite being halfway through an IMF programme worth $6 billion and lasting 39 months, Pakistan’s progress has been halted because of the lender’s misgivings about the country’s progress toward certain goals, particularly budgetary reduction.

Pakistan is scheduled to get $900 million in the next tranche, if the IMF gives the green light for a successful assessment.

Pakistan’s foreign currency reserves, which have fallen to $9.2 billion, are not adequate to cover imports for over 45 days.