Pakistan is aiming to secure a staff-level agreement (SLA) on an International Monetary Fund (IMF) bailout exceeding $6 billion this month, following the fulfillment of all the lender’s stipulations in its annual budget, as reported by the state minister for finance to Reuters.
To gain the IMF’s approval for a loan essential for avoiding another economic crisis, the country has established ambitious revenue targets in its annual budget. However, these measures have sparked domestic discontent due to increased taxation.
Minister of State for Finance, Revenue, and Power Ali Pervaiz Malik stated on Wednesday, “We hope to conclude this IMF process within the next three to four weeks,” with the goal of finalizing an SLA before the IMF board recess.
He estimated the bailout package would exceed $6 billion, though he emphasized that the IMF’s approval is the primary concern at this stage.
The IMF did not immediately respond to a request for comment.
For the fiscal year starting July 1, Pakistan has set a tax revenue target of 13 trillion rupees ($47 billion), representing a nearly 40 percent increase from the previous year, along with a significant reduction in its fiscal deficit to 5.9 percent of GDP from 7.4 percent.
