IMF Staff Missions to visits Islamabad by month-end; dates pending.
The official said that one of the reasons the IMF has taken so long to send a staff-level missions dates is due to the political climate in the nation. He did admit that the IMF has been pushing for a higher tax-to-GDP ratio, though.
An official who wished to remain anonymous said that following the Tuesday meeting of the Standing Committee on Finance of the National Assembly, it was revealed that future revenue collection is anticipated to experience a decrease due to a decline in growth and variation of other economic variables as a result of the flooding, while expenditure is anticipated to rise.
The official said that daily video links are used for conversations with the IMF and that rumors of new levies being implemented at the IMF’s request are untrue.
Due to the continuous exchange of economic data, he predicted that the ninth review negotiations with the IMF will last for five days. The nation has asked the Fund for assistance or a relaxation of the budget deficit ceiling following the disastrous floods.
Dr. Aisha Ghaus Pasha Stated Earlier that the IMF Executive Board
According to the minister, the floods will cause around nine million additional people to fall below the poverty line.
The GDP growth has reduced by 2%, along with inflation and other economic variables, and Pakistan is anticipating worldwide financing for the restoration and rehabilitation of the flood victims, she continued. As a result, the economic framework and indicators need to be reviewed.
She said that the IMF was also given a briefing on the economic system as well as revenue and how it would be impacted by the slowdown in GDP growth brought on by the floods and their effects on other economic factors.
The meeting would have the last say on whether Pakistan’s request for a waiver would be granted or not during a briefing to the committee meeting led by Qaiser Ahmed Shaikh. The Executive Board would only receive reports from staff-level missions and make the ultimate decision.
9th IMF Review: Still Working On the Framework
The minister informed the committee that at the annual meeting of the WB and IMF in Washington, 54 significant meetings were held, including high-level talks with the IMF and the World Bank, the ADB, and other bilaterals.
She said that the ADB had also been asked to repurpose the monies for the repair and reconstruction of the flood-affected districts.”We told them about the harm done by the flooding condition in the nation and urged the international community to provide Pakistan with compensation.”
