The virtual talks between Islamabad and the International Monetary Fund (IMF) have been moving positively. According to sources, the IMF has accepted Pakistan’s recent budget, calling it an example of making hard economic choices. The fund also appreciated local political parties’ constructive role in the budget approval process and underlined their collaboration towards achieving financial stability.
In addition, the global lender praised Pakistan for narrowing down tax exemptions, which it said was a significant step towards economic improvement. In the last week of June, an IMF delegation is expected to visit Pakistan to discuss a new loan program that could help the country get economic reforms and financial help.
Before this program, Pakistan had been working on prior actions. It had achieved most of the preliminary targets set by the IMF, which include, but are not limited to, revenue enhancement, controlling expenditures, and ensuring fiscal discipline. The government’s ownership of these reforms reflects its seriousness about sustainable growth.
IMF Expected to Approve Next Year’s Budget by June 28-29
As per sources, the IMF expects to clear next year’s budget by June 28 or 29th at maximum. This timely clearance will be critical for keeping up economic stability as well as maintaining continuity in ongoing reform momentum since structural adjustment focus & fiscal consolidation are aligned with recommendations made by international partners like IMF, etc., thereby further strengthening the partnership between both sides involved, i.e., Pakistan and International Monetary Fund (IMF).
These virtual negotiations, along with the upcoming visit of an IMF mission. Signify a renewed trust in Pakistani authorities’ management capabilities vis-à -vis economic policy coordination. Hence, positive feedback from such influential quarters should boost investor confidence. While also acting as a catalyst for attracting more FDI into different sectors of our economy. Especially those currently facing challenges due to the impact of the Covid-19 pandemic. Thus helping us address some critical areas needed during the post-Covid recovery stage.
The optimism surrounding these talks springs from the realization that without external financing support. Given through standby arrangements or other forms. Which only institutions like IMFs provide. We cannot hope to achieve long-term financial stability and growth objectives in this country.
