Pakistan is at an advanced stage of securing external financing commitments, which are crucial for unlocking a new $7 billion program with the International Monetary Fund (IMF).
The federal government anticipates receiving final loan approval from the IMF Executive Board on schedule, according to Finance Minister Muhammad Aurangzeb, who announced in a televised speech.
Finance Minister Aurangzeb emphasized that the government will maintain its proposed tax on traders to increase the tax-to-GDP ratio to at least 13 percent, addressing the unsustainable current ratio of 8.8 percent. Additionally, he committed to reducing the size of the federal government as a measure to cut expenditures.
Regarding monetary policy, Aurangzeb expressed optimism that the Monetary Policy Rate set by the central bank will decline as inflation decreases.
In related economic developments, Pakistan’s trade deficit has fallen to an 11-month low, driven by a surge in exports. This improvement provides a positive backdrop to the government’s ongoing efforts to stabilize the economy.
