Islamabad (TDI): The government has undertaken a series of stringent measures, including mandatory asset disclosures by civil servants and their families, to meet the conditions set by the International Monetary Fund (IMF) for the release of a $1.1 billion tranche under the Extended Fund Facility (EFF), The Express Tribune reported.
The tranche, tied to 39 strict conditions, underscores the IMF’s emphasis on fiscal discipline and transparency.
Among the key requirements is the mandatory declaration of assets by public servants and their families by February 2025, alongside the elimination of tax amnesties and the submission of a governance and corruption assessment report.
Other benchmarks include maintaining foreign exchange reserves to cover three months of import bills, keeping the gap between open market and interbank exchange rates within 1.25%, and increasing the State Bank of Pakistan’s reserves to $8.65 billion by the fiscal year’s end.
Adherence to 22 Key Points Essential for IMF Tranche
The Ministry of Finance has confirmed adherence to 22 key points is essential for accessing the tranche.
These also include limiting government guarantees to Rs5.6 trillion, controlling power sector arrears at Rs417 billion, and ensuring tax refund backlogs remain below Rs24 billion.
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During a briefing to the National Assembly’s Standing Committee on Finance, Finance Minister Muhammad Aurangzeb stated that while macroeconomic stability had been achieved over the past 14 months, continued reforms were vital.
He highlighted the government’s focus on taxation, energy, and population control, alongside initiatives to address inflation by reducing the role of intermediaries.
Aurangzeb also noted that the Economic Coordination Committee (ECC) was devising strategies for monthly reviews of essential food item prices, aiming to mitigate the impact of inflation on the populace.
The IMF agreement, he said, marks a critical juncture for Pakistan, describing it as the last opportunity to demonstrate commitment to economic reforms.
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The minister stressed the need for urgent measures to address challenges such as climate change, child stunting, and the increasing number of out-of-school children.
Additionally, Aurangzeb confirmed the nearing finalisation of a 10-year partnership framework with the World Bank, which is expected to bolster economic stability further.
Improvements in the stock market, he added, reflect growing investor confidence in the government’s reform agenda.
