The caretaker government is in for its first big test before the general elections in the country, as a review mission of the International Monetary Fund (IMF) is scheduled to arrive in Pakistan on November 2 for the first economic review.
The IMF review mission is said to be headed by Nathan Porter. The IMF will be briefed on the economic performance in the first quarter of the ongoing financial year from July to September.
In case of successful negotiations, Pakistan is likely to get the next installment of more than $700 million from the $3 billion the IMF agreed to loan to the country.
Back in July, the global lender had reached a stand-by arrangement with Pakistan for a bailout package of $3bn over nine months. After its approval from the IMF board in July, the Fund had disbursed an immediate installment of $1.1bn.
Meanwhile, the caretaker government is upbeat about a successful review with most of the economic targets achieved. According to data, a 24.17% growth in tax revenue has been reported, as $397.33 billion have been collected in the last three months.
Fulfilling more of the IMF’s demands, electricity and gas tariffs were hiked, while the authorities are also on track to achieve the petroleum development levy targets.
The IMF team is also likely to be briefed on the progress in privatising government institutions, including the PIA.
The briefing will also focus on the circular debt, exchange rate policy, interest rate, and foreign exchange reserves, as well as the possibility of a briefing on the crackdown on dollar smuggling and hoarding.
The IMF mission will also be informed about the objectives of the Special Investment Facility Council.
