Another $38 Billion Required Pakistan For Future Use, Says The IMF

In order to satisfy its future financial requirements, Pakistan requires $38 billion, the IMF reported on Wednesday.

The IMF has indicated that Pakistan's economy is at a "critical point" and financial and economic stability can be endangered if policy measures are not adopted as a matter of priority.

It is anticipated that the fund supported by other nations will be collected from IMF fund-supported programs. With the support of the Extended Fund Facility (EFF), the authorities ' comprehensive economic reform program aims to stabilize the economy, and lay the foundation for healthy and equal growth.

The industry of Pakistan wants to cut government debt and resilience, beginning with the implementation of an ambitious budget for 2019-20, the study says. The change will be backed by a major effort to dramatically boost federal and provincial income mobilization by four to five per cent of GDP over the three-year span.

The IMF proposed that public expenditure be extended to help the most vulnerable by enhancing and extending the safety nets. A flexible, market-driven exchange is needed to regain competitiveness, rebuild official reserves, and buffer the Pakistani economy against external shocks, it stated, adding that monetary policy to boost trust and curb inflation by an autonomous central bank will be supported.

Political interference with the setting of energy and gas tariffs should not be allowed to eliminate quasi-fiscal losses, and promote energy investments, the IMF said. Gradually this would lead to cost recovery for the industry. The govt of Pakistan has already risen the taxes on both products and, in December, is seeing further rises.

The fund also addressed whether organizations need to be strengthened, governance and transparency increased and the environment for investment was promoted.

A $6 billion rescue package for Pakistan was endorsed by the IMF on Wednesday. It's a credit program of three years. The Board of Directors of the IMF released $1 billion to Pakistan at once and stated in a declaration that it intends to "support the Economic Reform Program of the authorities" and to "help decrease financial vulnerabilities and create sustainable and stable growth." This is the 13th program of the IMF in Pakistan.