Islamabad, November 24, 2023 – Pakistan is optimistic about receiving $1.5 billion in inflows from various donor agencies soon after the disbursement by the International Monetary Fund (IMF).
Dr. Shamshad Akhtar, the Federal Minister for Finance and Revenue, has announced that Pakistan is set to receive approximately $1.5 billion from various donor agencies, following the expected disbursement from the International Monetary Fund (IMF). In an exclusive interview with a private news channel, the minister disclosed that the IMF Executive Board is likely to approve a tranche of $700 million for Pakistan in the coming month.
Dr. Akhtar expressed confidence that the approval of the Stand-By Arrangement (SBA) by the IMF Executive Board would not only unlock the specified funds but also pave the way for additional financial assistance from various multilateral financial institutions. The SBA agreement, which is scheduled for approval before the Christmas holidays next month, is contingent on the government’s performance, specifically its adherence to the implemented reforms.
Highlighting the government’s commitment to economic reforms, Dr. Akhtar acknowledged the smooth implementation of the second tranche of the IMF’s SBA program. She credited the success to the collaborative efforts of all concerned ministries and departments, ensuring the international community that the government is diligently addressing the economic challenges.
To meet SBA conditions, the government has taken significant steps such as withdrawing import bans to encourage investment, easing import licensing, and stabilizing the exchange rate. Dr. Akhtar emphasized the comprehensive approach, which included exchange companies reforms and collaboration with law enforcement agencies, successfully eliminating the grey currency market and bringing stability to the exchange rate.
Since assuming office as finance minister, Dr. Akhtar claimed to have implemented successful stabilization measures that have revitalized the country’s economy. While acknowledging the incipient nature of this recovery, she expressed optimism about its continuation, emphasizing the need for sustained efforts.
The finance minister stressed the importance of continued care for the economy, stating that it requires ongoing attention rather than a one-time action. She attributed the government’s success to the legal mandate and empowerment given to the caretaker government, enabling the implementation of crucial economic measures.
Dr. Akhtar lauded the collaborative efforts of the government’s leadership, including the Prime Minister and the State Bank of Pakistan, in steering the economy towards macroeconomic sustainability. She affirmed the government’s commitment to back up economic recovery with strong fundamental structural reforms.
Addressing concerns about additional measures and budget requirements, Dr. Akhtar reassured that the government had already complied with the SBA agreement, and no further measures or budget adjustments were anticipated.
Regarding revenue collection, Dr. Akhtar expected the Federal Board of Revenue (FBR) to exceed the targeted Rs9.4 trillion, citing increased demand from the expenditure side. She noted that in the first quarter, the FBR had surpassed IMF-set targets, and any revenue shortfalls would be addressed with additional measures.
The finance minister disclosed that the FBR is undergoing restructuring and transformation, with plans to correct internal governance and establish an oversight mechanism. She outlined the separation of tax policy and revenue division, with a dedicated division focusing on collection. Customs would also be separated from FBR to concentrate on trade facilitation and border controls.
Dr. Akhtar concluded by highlighting the preparation of a new documentation law, aimed at creating a big data bank through collaboration between FBR and NADRA. The Chairman of NADRA has been appointed as the head of a high-level technical committee to oversee this collaborative effort.
