ISLAMABAD, Pakistan: The Federal Minister for Finance and Revenue Senator Mohammad Ishaq Dar has said that Pakistan and the International Monetary Fund (IMF) have mutually agreed to a number of points for the completion of ninth review of the Extended Fund Facility (EFF).
While addressing a Press Conference in Islamabad on Friday after the conclusion of talks with the IMF Mission, the minister shared the broad contours of the understanding reached with the IMF.
Federal Finance Minister Senator Mohammad Ishaq Dar briefed the media on conclusion of talks with IMF Mission. pic.twitter.com/WjdUkPFP17
— Ministry of Finance (@FinMinistryPak) February 10, 2023
Ishaq Dar said that taxation measures of Rs 170 billion will be taken as opposed to the rumours of Rs 700 to Rs 800 billion.
The finance minister said that reforms in the energy sector will be implemented and the main thrust of it is to check the flow of the circular debt. He said the circular debt in the gas sector will be brought to zero while untargeted subsidies will be minimized.
The minister said that these decisions in fact are in the Country’s own interest to fix the economy.
The finance minister said that commitment vis-a-vis Petroleum Development Levy (PDL) has almost been fulfilled.
Furthermore, he said that it has been decided to increase the budget of Benazir Income Support Program (BISP) by Rs 40 billion from Rs 360 billion to Rs 400 billion in order to reduce the burden of inflation on the most vulnerable segments of the society.
Ishaq Dar said that we have received Memorandum of Economic and Financial Policies (MEFP) from the IMF and talks on it will virtually be started from Monday.
The finance minister said that Prime Minister Shahbaz Sharif, during a Zoom meeting with the IMF Mission, expressed Pakistan’s resolve to fulfill the commitments.
Ishaq Dar said that the next tranche will be released to Pakistan after approval by the IMF’s Executive Board.