Imf Agreements With Pakistan

„Despite a difficult environment, the implementation of the program was good and all performance criteria for the end of September were met with comfortable margins. Work to finalize the final structural benchmarks by the end of September will continue. Considerable progress has been made in improving the AML/CFT framework, although further work is needed before March 2020. International partners remain committed to supporting the authorities` reform efforts and providing the necessary financial guarantees. „The IMF package is riddled with obligations that weigh on the lives of ordinary people. The Pakistani people and traders are not able to pay the taxes demanded by the IMF,“ said diplomat Farooq Tariq, spokesman and former secretary general of the Awami Workers` Party. „The short-term macroeconomic outlook remains broadly unchanged from the approval of the programme, with G20 activity and average inflation likely to gradually slow to 11.8%. However, domestic and international risks persist and structural economic challenges persist. Crucial fiscal consolidation to reduce public debt and build resilience, starting with the adoption of an ambitious budget for fiscal year 2020. The adjustment is supported by major efforts to dramatically increase revenue mobilization at the federal and regional levels by 4% to 5% of GDP over the programming period; The IMF also asked Pakistan to pay $37.359 billion in external debt under the IMF bailout agreement. Islamabad owes Beijing $14.682 billion, mainly due to the China-Pakistan Economic Corridor (CPEC). The increase in taxes demanded by the IMF was visible in the budget for this fiscal year: the government raised the Federal Revenue Council`s (FBR) tax collection target from 3.94 trillion Pakistani rupees ($25 billion) to Rs 5.500 billion. The documents also show that an additional 1,500 billion rupees and 1.31 trillion rupees are planned when revenue is raised over the next two years of the bailout.