The Ministry of Finance has outlined new and ambitious targets aimed at bolstering Pakistan’s economic landscape with a bigger bailout from the International Monetary Fund (IMF), according to high-level sources.
Sources in the Finance Ministry told ProPakistani that the Federal Board of Revenue (FBR) will enhance the tax-to-GDP ratio to 15 percent to get in bed with the IMF for a bigger bailout.
Sources said authorities are keen on maintaining foreign exchange reserves at a level equivalent to three months’ worth of import bills. This strategic move aims to fortify the country’s financial stability and resilience against external shocks.
Efforts to curb the current account deficit and achieve a primary balance surplus have been prioritized, signaling a proactive approach to fiscal management.
Sources stated that subsidy allocation in the forthcoming budget will be contingent upon the conditions stipulated in the new IMF loan program. Notably, the caretaker government devised an economic roadmap and a functional loan program to help the new government navigate the economy.
With the current loan program nearing close, a fresh and much bigger program with the IMF is in the works. Negotiations for the new bailout are expected to be finalized, with both parties striving to reach mutual agreements on pertinent terms and conditions in the coming weeks.
The idea is efforts will be made to assure the IMF of Pakistan’s unwavering commitment to fulfilling the conditions set forth which would help the cash-strapped nation unlock a big bailout from the crisis lender.