ISLAMABAD
The International Monetary Fund (IMF) has again postponed its sixth review of the extended fund facility (EFF) for Pakistan. The session was due on January 28, which will now be held on February 2, according to the IMF.
The meeting has been postponed for a second time. The IMF was first supposed to review the Pakistan loan programme on January 12. It was postponed on request of the Pakistan government because the National Assembly was yet to pass the supplementary finance bill 2021 (mini-budget).
Under the agreement, Pakistan has increased power tariffs and has promised to jack up the petroleum development levy to Rs30 per litre. It has also withdrawn tax exemptions of Rs343 billion and almost awarded greater autonomy to the central bank, under the agreement.
The SBP amendment bill was passed by the National Assembly last week and has been tabled in the Senate, where it would be put to a vote before the IMF executive board meeting.
Pakistan is currently marred with financial challenges as the country’s trade deficit is surging high, inflation is rising and the government had to bring the mini-budget to hike taxes to meet certain demands of the IMF. Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) government has been criticised by the Pakistan Muslim League-Nawaz (PML-N), Pakistan Peoples Party (PPP) and other opposition parties in Pakistan with some leaders demanding Imran Khan to resign.
