The International Monetary Fund (IMF) has handed Pakistan a new list of demands, with officials stating that the key focus of these new requirements is revenue shortfall and rightsizing.
During negotiations between the international financial institution and Pakistan, high-level discussions took place in the presence of State Bank officials and the Ministry of Finance. Talks also included measures and procedures related to Islamic banking. Additionally, discussions were held with the State Bank regarding development loans, refinance transition, and the bank resolution framework.
The IMF delegation also discussed measures to reduce risks in the banking sector. In the negotiations, demands were made regarding the currency market, monetary policy measures, and cost-cutting through rightsizing. Furthermore, the ministries involved in the talks were urged not to compromise on rightsizing and revenue shortfall.
The delegation gave Pakistan a deadline until the next quarter, requiring it to present a plan to bridge the shortfall. It was instructed that the Federal Board of Revenue (FBR) implement measures under compliance risk management and the risk improvement plan. During a briefing on large retailers outside the tax net, the IMF obtained details of high-risk cases and issued directives for recovery.
