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The IMF and Pakistan have reached a staff-level agreement on the first review of the $3 billion bailout package after Islamabad agreed to stop meddling in the currency market and stick to the fiscal consolidation plan.
The IMF issued a statement after its visit to Pakistan, asking for more transparency in how the assets under the Sovereign Wealth Fund are managed and how the Special Investment Facilitation Council (SIFC) operates.
Pakistan also has to disclose the asset declarations of the cabinet members and a task force will examine the country’s anti-corruption framework.
Pakistan has promised to take extra tax measures if the Federal Board of Revenue fails to meet the monthly tax collection targets. The country will keep its monetary policy aligned with inflationary trends.
The IMF stressed on continuing fiscal consolidation to lower the public debt, while meeting development needs – in a statement that implies that the IMF did not agree with the Finance Ministry’s policy to cut development spending for achieving the primary budget surplus target.
