Finance Minister Miftah Ismail on Thursday said reforms that will be introduced through the Budget 2022-23, set to be announced on Friday, will please the International Monetary Fund (IMF), taking the country closer to revival of the stalled Extended Fund Facility (EFF). Miftah's statement came on the sidelines of the Economic Survey 2021-22's launching ceremony.
“Our negotiations with the IMF are ongoing,” said Miftah at the press conference held to review the government's economic performance during the outgoing fiscal year, a day before it announces the federal budget.
“We believe that after the Budget 2022-23, we would move closer to a staff-level agreement with the Fund,” he added.
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The finance minister, who took over in mid-April, said that the government has shared the "relevant information and details" with the international lender.
Earlier, Miftah had expressed hope that Pakistan would reach a staff-level agreement with the IMF by next week which will help strengthen the rupee and the economy.
Pakistan faces several economic battles including a precarious balance of payments' position, rising inflation, and remains in talks with the IMF for revival of its $6-billion EFF. It is also seeking an extension in the programme duration as well as enhancement of its size by $2 billion.
The government is set to present the federal budget for FY23 in parliament on Friday, with special focus on fiscal management, revenue mobilisation, and measures for economic stabilisation and growth.
The government is expected to present a Rs9.5 trillion budget for fiscal year 2022-23 including Rs8.79 trillion in current expenditures and Rs800 billion for the federal Public Sector Development Program (PSDP).
Reports suggest the IMF has sought an enhancement in tax rates while also seeking removal of energy subsidies. The latter condition prompted the government to increase petrol prices twice in less than two weeks.
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