Policy rate hike part of IMF agreement: Pasha
- Pakistan still does not feature on the IMF Executive Board calendar, but it could be added in the event that the ninth review is declared a success
ISLAMABAD: An agreement has been reached in principle with the International Monetary Fund (IMF) envisaging Rs300 billion adjustment with Rs215 billion under taxes and Rs85 billion under reduction in expenditure.
This, as per former finance minister Dr Hafeez Pasha, the FBR taxes’ target would be achievable if the rupee-dollar parity is allowed to be market-based.
Pasha said that in his opinion an increase in 100 basis points in the policy rate by the State Bank of Pakistan (SBP) is also part of the agreement.
Former advisor Ministry of Finance Dr Ashfaq Hassan Khan told Business Recorder that all the measures have been taken to complete the review. Once the staff-level agreement is reached the amount of the 9th review would be disbursed to Pakistan as all its conditions have been met.
The IMF Executive Board has not included Pakistan’s 9th review on its board meeting agenda till 6th July 2023.
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According to the IMF Executive Board calendar available on its website, the next meetings are scheduled for June 27, 28, and 29,followed by meetings on July 5 and July 6, 2023; however, Pakistan is not on the agenda though it could be added in the event that the ninth review is declared a success.
Copyright Business Recorder, 2023
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