Pakistan is expected to get $4 billion from the International Monetary Fund (IMF) in this fiscal year (FY23) as the country has fulfilled all the conditions set by the Fund.
This was said by the Federal Minister of Finance and Revenue, Mr. Miftah Ismail, during an interview with a news outlet.
He said that Pakistan had a staff-level agreement with the IMF, and the Fund had approved the measures taken by the government. The IMF had shown commitment to support the deteriorating economy of Pakistan and would not let the economy fall, he added.
The minister also revealed that Pakistan was soon to get additional funding from the World Bank (WB), Asian Development Bank (ADB), and other institutions.
Replying to a question on the depreciation of the Pakistan Rupee, Miftah told Geo News that the External payments and higher import bill exert pressure on the Rupee, and the government has been trying its best to reduce the import bill. Till 18 July 2022, the import bill had reached $2.6 billion, i.e., 20 percent lower compared to the previous fiscal year, the minister remarked. He was of the view that the reduction would help lessen the pressure on the Rupee and stabilize the currency. The import bill is expected to increase to $5.5 billion by the end of July 2022.
He further informed that the current account deficit (CAD) in the running month will be around $1 billion compared to $2 billion in the previous month.
Commenting on the recent decision to reduce petrol prices, the minister said that IMF has no objection to the provision of cheaper fuel to the underprivileged class, and the decision would not impact the IMF program. Previously, Miftah Ismail had said that the government would further reduce the price of petrol if it gets more fiscal space.
Earlier, the Director Communication IMF, Gerry Rice, while talking to the media in Washington, had verified that Pakistan and IMF had reached a staff-level agreement and the IMF Executive Board would make the final decision on the program in 3-6 weeks.
