Led by Ernesto Ramirez Rigo, the International Monetary Fund (IMF), visited Pakistan from April 29 to May 11. Discussing the IMF’s support for Pakistan’s economic reform program, both parties have agreed on supporting economic policies by a 39 month Extended Fund Arrangement (EFF) for US$6 billion.
The EFF has been agreed upon with an objective to minimize domestic and external imbalances, greater transparency, and economic growth and improved living standards. The agreement is subject to management and Executive Board approvals of IMF, timely execution of aforementioned actions and confirmation of financial promises of international partners.
The upcoming budget for fiscal year 2019-20 is an important step in the authorities’ fiscal strategy. The budget will aim for a primary deficit of 0.6 percent of GDP. It will be supported by tax policy revenue mobilization and spending growth to safeguard the most vulnerable social segments.
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