ISLAMABAD: Pakistan is taking significant steps to fulfill the stringent conditions set by the International Monetary Fund (IMF) in order to secure the next $1.1 billion tranche of its $7 billion bailout package. The Finance Ministry has begun preparations for the first economic review by the IMF, which is scheduled for early 2025.
According to official documents, the government is fully committed to meeting the IMF’s targets. One of the key objectives is to achieve tax collections of Rs6,009 billion by December 2024 and Rs9,168 billion by March 2025. Furthermore, the government has vowed not to grant any new tax amnesties or concessions to businesses.
As part of its commitment, the government plans to amend the Civil Servants Act by February 2025, requiring officials and their families to declare their assets. Tax collection on provincial agricultural income will also begin, and advanced risk management systems will be introduced in major tax offices in Islamabad, Karachi, and Lahore.
Other targets include capping energy sector liabilities at Rs417 billion, limiting tax refunds to Rs24 billion, and ending gas supplies to captive power plants by January 2025. The government also plans to complete measures for the privatization of two power distribution companies (DISCOs).
The government has pledged that no supplementary grants will be announced without parliamentary approval, and it has committed to ensuring zero credit provisions from the State Bank of Pakistan. Additionally, steps for gradually reducing the size of public institutions are being taken.
The Finance Ministry has reaffirmed the government’s firm commitment to macroeconomic reforms and the successful implementation of the IMF program. A ministry spokesperson assured that the 37-month IMF arrangement would be completed successfully, and the government would continue to meet the targets outlined by the IMF. Additionally, Pakistan aims to boost its foreign exchange reserves to cover at least three months of imports, which is vital to sustaining the bailout program.
