Hours after talks between Pakistan and International Monetary Fund concluded, the Fund officially said a staff-level agreement has been reached regarding the stand-by agreement. The agreement will lead to $1.1 billion being released. \u201cThe IMF team has reached a staff-level agreement with the Pakistani authorities on the second and final review of Pakistan\u2019s stabilization program supported by the IMF\u2019s US$3 billion,\u201d Nathan Porter, who led the IMF delegation, said in a statement. The statement added that the agreement would be subject to approval by the IMF\u2019s executive board after which the SBA\u2019s final tranche worth $1.1 billion will be released. IMF also said that Pakistan\u2019s economic situation has improved over the course of the reviews, particularly with help from firendly countries. \u201cPakistan\u2019s economic and financial position has improved in the months since the first review, with growth and confidence continuing to recover on the back of prudent policy management and the resumption of inflows from multilateral and bilateral partners,\u201d IMF said. The Fund\u2019s statement noted that economic growth would remain \u2018modest\u2019 this year and inflation would also remain above target. IMF also confirmed that Pakistan has expressed interest in securing a medium term fund facility. \u201cThe authorities also expressed interest in a successor medium-term Fund-supported program with the aim of permanently resolving Pakistan\u2019s fiscal and external sustainability weaknesses, strengthening its economic recovery, and laying the foundations for strong, sustainable, and inclusive growth,\u201d IMF said. IMF added that when talks about a longer deal do take place, they are likely to centered around strengthening public finances, restoring the energy sector\u2019s viability, returning inflation to target, a more transparent flexible FX market and promoting private-led activity According to media reports, the Fund has recommended raising excise duties on luxury goods. IMF has recommended that cigarettes should receive the same excise duties regardless of whether they are imported or locally manufactured. The Fund has also recommended extending the same rule to electronic cigarettes. Sources also told BR that the list of items that are considered excisable is too long and it will have to be shortened in the long term by removing items that do not generate significant revenue. Previous reports have mentioned IMF demands on higher taxes for real esate and retail sector as well.<\/p>\n","protected":false},"excerpt":{"rendered":"
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