IMF likely to announce EFF agreement by this week

Islamabad: Federal Minister for Commerce, Syed Naveed Qamar said Wednesday that the International Monetary Fund (IMF) was likely to announce its staff level agreement on Extended Fund Facility (EFF) with Pakistan by this week.

“Pakistan has taken all the measures needed to unfreeze a $6.5 billion credit line and expects to clinch the deal ‘any day now,’” the minister said in an interview with Bloomberg.

After formal announcement by the fund, Pakistan would get a $1.2 billion tranche under the EFF.

He said, the IMF agreement would give investors and creditors confidence that “Pakistan’s economy is now stabilizing and has taken all the right steps, so in that sense their money would remain protected.

“The IMF program is the beginning, not the culmination, of all other monies flowing in” he said.

He said, a pickup in imports once the nation boosts its reserves will also benefit exports, the minister said.

Limited reserves restricted Pakistan’s ability to fund imports, including intermediary goods, and stranded thousands of containers of supplies at ports.

Pakistan authorities have taken steps including increasing taxes, cutting subsidies and devaluing its currency to meet IMF conditions, the Bloomberg reported.

It is pertinent to mention here that The National Assembly on Monday passed the Finance (Supplementary) Bill, 2023 aimed to amend certain laws relating to taxes and duties.

The bill proposed to impose new taxes of Rs170 billion to minimize fiscal deficit.