The sources stated that a report has been sent to the IMF and that Pakistan has met 25 of the foreign lender’s objectives, according to a study put together by the finance ministry.
The IMF’s need to refrain from taking out loans from the SBP was met, and the international loans were paid back on schedule as well.
According to the report, Pakistan also paid outstanding payments in the electricity sector and tax refunds on time. Additionally, the requirement to grant tax exemptions and amnesty was satisfied.
The requirement to raise gas and electricity rates was also fulfilled. According to the sources, Pakistan is hopeful that it would reach the remaining goal before the IMF delegation gets to Islamabad.
The tight conclusion of Pakistan’s election and the ensuing short-term political unrest, according to Fitch Ratings earlier this week, might make it more difficult for the nation to get an IMF funding deal to replace the Stand-By Arrangement (SBA), which expires in March 2024.
A “new deal,” according to the credit rating agency, is essential to the nation’s credit profile. We anticipate that one will be reached in the next few months, but if negotiations take a long time or are unsuccessful, it would put more pressure on the country’s external liquidity and increase the likelihood of default.
