IMF Report Details Pakistan’s Fiscal Policy
The combined second through fifth reviews of the Extended Arrangement for Pakistan under the Extended Fund Facility (EFF) were finished by the Executive Board of the International Monetary Fund (IMF) in March 2021.
Due to this, the fund agreed to an emergency release worth roughly $500 million for Pakistan’s budget support.
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Furthermore, the initiative sponsored by the EFF started to minimize economic imbalances and provide the groundwork for bettering economic performance.
According to the research, the new market-determined exchange rate has improved the rupee’s external position and confidence, luring significant international investment into the domestic debt market.
One of the important economic trends noted in the report is that the Pakistani economy had already begun to improve before the outbreak.
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The article also stated that the IMF board agrees that the FY 2022 budget will be supported by substantial tax policy revisions.
This will be accomplished through the reform of the general sales tax (GST) and the personal income tax (PIT), as well as other more comprehensive measures that will strengthen tax administration, improve public financial management, manage debt better, and protect the caliber and transparency of spending related to the pandemic.
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