ISLAMABAD September 10, 2024 (TDI): IMF’s package was linked to securing external financing of $ 2 billion from bilateral and commercial lenders within the ongoing week, a matter that could delay approval of $ 7 billion from the executive board of the fund till October.
And if Pakistan fails to secure external financing the approval could be delayed till October this year, The News, one of largest circulated newspaper in Pakistan, has reported.
Quoting unidentified officials, the report added that Pakistan would have to dispatch its signed Letter of Intent (LoI) to the IMF’s Executive Board with a request to consider approval of $7 billion under 37 months EFF.
And the written commitment that the Government of Pakistan would comply with all agreed condition of the Fund programme is required, officials confirmed.
Till September 18 Pakistan is not existing on the Executive Board of International Monetary Fund (IMF).
The country is making efforts, without a visible success until now, to secure assurances from the bilateral creditors on the financing gap, as IMF has identified.
The report conveys fears of delay in getting the expected $ 7 billion.
Read More: Dar casts doubt on IMF’s motives-towards Pakistan/
With the emerging scenario, if slippages on fiscal front surfaced, the IMF could come up with demand of mini budget, the report said, while affirming serious risks to achieve FBR’s tax and non-tax targets.
Now the internal working of the FBR is projecting that the FBR may face a revenue shortfall of Rs200 to Rs220 billion for the first quarter (July-September) and some kind of rough estimates would appear around September 18 to 20 when the sales tax returns would be made available.
If there is a substantial revenue shortfall, then there would be no other option but to curtail expenditures in a big way.
It said that the Ministry of Finance is hoping that the upcoming Monetary Policy Committee (MPC) may consider slashing the policy rate n the next meeting scheduled to be held on Sept 12, 2024.
Also Read: Pakistan Finance Minister Still Confident on IMF Deal
This whole situation has forced top officials to keep mum over the issues and some officials are only hoping for good news within this week on external financing issue.
