New IMF Agreement, Adverse Effects and Remedies

          Finally, after the budget, Pakistan and the International Monetary Fund (IMF) have agreed on a new package at the staff level, under which USD 7 billion will be provided over a period of 37 months. Final approval will be given by the Executive Board of the institution. The objectives of the new program include macroeconomic stability, monetary policy, sustainable growth and broadening the tax base. The expansion fund facility is available on the basis of economic stability achieved under the 2023 Standby Arrangement. The IMF mission visited Pakistan from May 13 to May 23, after which virtual talks were held. For the first time in the country's 77-year history, the federal government and the provinces approved taxing agricultural income on the demand of Domor. Read More