IMF Demands Further Economic Measures from Pakistan Amid Loan Negotiations

According to sources, Pakistan and the International Monetary Fund held virtual talks on the efforts made in the budget to meet the conditions.

The IMF was briefed on Pakistan’s measures to increase gas prices and other economic decisions in the budget, sources added.

Sources indicated that negotiations for a new loan program are underway, and an agreement is expected to be signed this month.

According to the Ministry of Finance, all prior conditions for negotiations with the IMF have been completed.

International Monetary Fund

On June 29, the International Monetary Fund (IMF) termed budget 2024-25 approval insufficient and demanded Pakistan to do more.

Sources said that the IMF wants Pakistan to hike the electricity and gas rates from July 1 and immediately implement the NEPRA decision regarding the increase in gas and power tariffs.

IMF also demanded the removal of tax exemptions and subsidies, terming them “essential” for the country’s economic recovery, sources added.

IMF says budget 2024 approval ‘not enough’ and demands Pakistan to ‘Do more’

Later, finance ministry officials anticipated that an agreement for the new loan program would be finalized in July. The new program is expected to range between $6 billion and $8 billion, although the exact amount has yet to be finalized.

The new loan program with the IMF is projected to span three years.

The National Assembly (NA) on July 28 approved the Federal Budget for the fiscal year 2024-25 with a total outlay of Rs18,870 billion.