IMF mission to arrive in Pakistan by late October for economic review: Report

Islamabad: The IMF will send its delegation to Pakistan in the last week of October to review the cash-strapped country’s economic performance in the first three months of the current fiscal year, according to a media report on Tuesday.

Quoting sources in the Ministry of Finance, The Express Tribune newspaper said that during the meeting with the International Monetary Fund (IMF) mission, the caretaker government will also discuss reforms in various sectors, including taxes and energy.

The report said once the economic review is successfully completed, Pakistan will receive the next installment of USD 700 million from the IMF after its board's approval.

The Washington-based global lender transferred USD 1.2 billion to the cash-strapped country in July, as part of the USD 3 billion bailout programme for nine months to support the government’s efforts to stabilise the country's ailing economy.

Although essentially a bridge loan, it offered much respite to Pakistan, which was battling an acute balance of payments crisis and falling foreign exchange reserves, the report said.

Meanwhile, it has also been reported that a plan for expenditure reduction is prepared, and discussions will be held on the plan to reduce expenses, including freezing allowances, and pensions, and suspending officer recruitment.

The government is also likely to be compelled to increase gas prices on IMF demands.

Pakistan’s economy has been in a free fall mode for the last many years, bringing untold pressure on the poor masses in the form of unchecked inflation.