The IMF’s assessment of Pakistan’s economic crisis emphasizes how complicated and numerous the country’s problems are, as well as how severe the dangers involved are.
According to the lender, Pakistan requires support from more multilateral lenders in addition to the present standby agreement and another International Monetary Fund (IMF) program.
Pakistan’s economic risks
Beyond the current program duration, adjustments must be made to address Pakistan’s structural issues, particularly long-term balance of payments constraints. Creditor support is also necessary.
The Memorandum of Economic and Fiscal Policies (MEFP) that State Bank Governor Jameel Ahmed and Finance Minister Ishaq Dar signed served as the report’s foundation.
- IMF assesses Pakistan’s economic crisis as complex, severe.
- MEFP foundation for report: State Bank Governor, Finance Minister.
- Administration avoids tax amnesties, exemptions without consent in 2023-2024.
The government has pledged to inform the public as soon as gas prices rise by more than 40% and electricity rates rise by 5 Pakistani Rupees per unit. With the remaining power producers, the government has pledged to renegotiate power-purchase agreements or extend the terms of their debt service payments.
The government has promised to merge gas pricing for both domestic and imported natural gas through a weighted average tariff and to give immediate notice of any changes to gas tariffs as established by Ogra.
Additionally, the administration has vowed not to introduce new tax amnesties or provide additional tax exemptions in 2023–2024 without first receiving consent.
In addition, the government has promised to restore a market-determined exchange rate, reduce inflation, and replenish foreign exchange reserves to guarantee monetary and financial stability. The government will refrain from using administrative means to direct or favor market participants about currency rates or forex demand.
