The International Monetary Fund, the Washington-based financial body, is set to send its delegation to cash-strapped Pakistan to review the country’s economic performance in the first three months of the current fiscal year, according to a report published by PTI. .
Quoting sources in the Ministry of Finance, The Express Tribune The newspaper said that during the meeting with the IMF mission, the caretaker government will also discuss reforms in various sectors, including taxes and energy.
Once the economic review is successfully completed, Pakistan will receive the next tranche of US$700 million from the IMF after approval by its board, the report said.
The Washington-based global bank transferred US$1.2 billion to the cash-strapped country in July, as part of a nine-month US$3 billion bailout program to support the government’s efforts to stabilize the country’s faltering economy, news agency PTI reported. .
The report said that although it was essentially a bridge loan, it provided much relief to Pakistan, which was suffering from a severe balance of payments crisis and declining foreign exchange reserves.
At the same time, it was also reported that an expenditure reduction plan has been prepared, and discussions will be held on the expenditure reduction plan, including freezing allowances and pensions and suspending officer recruitment.
The government will also likely have to increase gas prices based on IMF demands. Pakistan’s economy has been in free fall for the past several years, putting untold pressure on the poor masses in the form of hyperinflation.
The country’s inflation rate rose for the first time in four months after the government raised fuel prices to meet the International Monetary Fund’s conditions for its ongoing $3 billion bailout program.
Consumer prices jumped 31.44% in September compared to the previous year. The reading exceeds the average estimate for a 30.95% increase in a Bloomberg poll and 27.4% in August.
Pakistan’s interim government has raised fuel costs due to rising global prices and plans to raise gas prices as part of the International Monetary Fund’s conditions for continuing its bailout program that began in July. These moves are likely to increase the cost of living and may spark protests again among Pakistanis who are feeling the pinch of the crisis.
(with PTI inputs)
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