Islamabad: Pakistan is set to commence discussions with the International Monetary Fund (IMF) today regarding the disbursement of the next installment, amounting to $700 million. An IMF review mission, led by the lender's country chief Nathan Porter, arrived in Pakistan to assess the nation's economic performance for the first quarter of the current fiscal year (July to September).
Sources from the finance ministry have confirmed that Pakistan has fulfilled all IMF conditions for the upcoming review talks under the $3 billion standby arrangement (SBA), scheduled for November. It's likely that Pakistan will raise the diesel levy from Rs55 to Rs60 per liter before the discussions with the IMF, in compliance with IMF conditions, while gas rates have already been increased.
Pakistan appears confident in the completion of the IMF review, having met the conditions set for the first quarter of FY2023-24. The Federal Board of Revenue (FBR) exceeded its tax collection target, amassing Rs2,041 billion from July to September 2023-24, without implementing any tax amnesty scheme. Additionally, Pakistan collected Rs222 billion in petroleum levy during the same period and made efforts to reduce circular debts in the electricity and gas sectors. To meet IMF requirements, Pakistan also raised the basic electricity tariff by Rs7.50 per unit, and a nearly 200% increase in gas tariffs will be in effect from November 1.
