The International Monetary Fund (IMF) on Thursday (Dec 19) during a meeting of its executive board in Washington, approved second tranche worth of $452 million for Pakistan under the $6 billion loan package.
International Monetary Fund has said Pakistan’s economic reforms program is on track and has started to bear fruit. The world lender said that decisive policy implementation by Pakistani authorities is helping to preserve economic stability.
“The authorities are committed to sustaining the progress on fiscal adjustment to place debt on a downward path. The planned reforms include strengthening tax revenue mobilization, including the elimination of tax exemptions and loopholes, and prudent expenditure policies. Preparations for a comprehensive tax policy reform should start early to ensure timely implementation. Enhanced social safety nets will help alleviate social costs and build support for reforms”.
“The flexible, market-determined exchange rate remains essential to cushion the economy against external shocks and rebuild reserve buffers. The current monetary stance is appropriately tight and should only be eased once disinflation is firmly entrenched. Strengthening the State Bank of Pakistan’s autonomy and governance will support these efforts.
“The authorities have adopted a comprehensive plan to address the accumulation of arrears in the power sector. Its full implementation is key to improve collection, reduce losses, and enhance governance. Timely and regular adjustment of energy tariffs will bring the sector in line with cost recovery.
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