Pakistan Set to Receive $710 M IMF Installment in December

Discussions Between Pakistan and IMF Concludes with Positive Economic Review

Islamabad, Nov 15,2023: In a significant development, Pakistan is poised to receive a crucial installment of $710 million from the International Monetary Fund (IMF) in December, pending approval from the Executive Board.

Sources indicate that the last day of talks between Pakistan and the IMF has concluded, with economic review discussions deemed successful.

Insiders report that the IMF mission and Pakistan’s economic team have concluded discussions across all sectors, with Caretaker Finance Minister Shamsmad Akhtar leading policy-level negotiations with the IMF mission.

According to sources, the IMF mission and economic team are expected to finalize the draft of the Memorandum of Economic and Financial Policies (MEFP) today, marking a key milestone in the ongoing negotiations.

As part of the agreement, it has been decided to impose a windfall tax of up to 40% on bank profits, amounting to approximately 55 billion rupees. The imposition of this windfall tax aligns with the conditions set by the IMF. The sources from the Ministry of Finance suggest that the tax on bank profits will be collected for the financial year 2021 and 2022, with the collection slated to commence next month.

UAE reassured IMF for Pakistan’s external financing gap of $6.5 billion

In a related development, the ambassador of the United Arab Emirates (UAE) has reassured the IMF regarding Pakistan’s external financing gap of $6.5 billion. During a crucial meeting between the IMF Mission Chief and the UAE Ambassador, discussions focused on strategies to bridge the external financing gap.

Sources reveal that the UAE ambassador has pledged to play a role in ensuring economic stability for Pakistan. This assurance from the UAE comes as the IMF mission continues to confirm external financing for Pakistan, marking a positive step forward in addressing the country’s economic challenges.