According to an IMF Resident, there is a longer list of requirements that Pakistan must meet in order to get the IMF tranche, including gasoline, energy subsidies, and a huge fiscal deficit.
“It will be critical to meet programme goals to implement a package of comprehensive steps, including the withdrawal of fuel and energy subsidies and the FY2023 budget,” said IMF Resident Representative Esther Perez Ruiz.
Since the Doha talks between Pakistan and the IMF were somewhat inconclusive, and technical talks between the two parties are set to resume today (Tuesday), the phasing out of fuel and energy subsidies, the budget for the coming fiscal year 2022–23, and potentially several conditions remain crucial for Pakistan to meet the IMF programme objectives.
“Discussions with the Pakistani authorities, aimed at achieving an agreement to facilitate the completion of the upcoming seventh review under the 2019 Extended Fund Facility (EFF), are underway and continue highly positive,” said the IMF’s resident representative.
“The IMF applauds the government’s recent move to begin aligning gasoline prices with international prices as part of a broader package of policies and reforms aimed at restoring macroeconomic stability.” Added the representative
The IMF has requested that the government establish a revenue goal for FY23 of Rs. 7,255 billion. The IMF is still considering the inflation goal for the next fiscal year, as well as subsidies and the budget deficit.