ISLAMABAD: Pakistan has reportedly sent a Letter of Intent (LoI) to the International Monetary Fund (IMF) containing nine major assurances following the staff-level agreement on a nine-month $3 billion stand-by arrangement (SBA).

Official sources in the Finance Division revealed Pakistan has sent the LoI – signed by Finance Minister Ishaq Dar and State Bank Governor Jameel Ahmed – including the assurance that no new tax amnesty would be granted during the next nine months.

The assurances to the IMF included no amnesty scheme will be offered during nine months, tax revenues will be increased, government to implement financial discipline, energy reforms will also be implemented, the exchange rate to be determined by the market, trade restrictions will be lifted, government to implement assurances given to lending countries and institutions, measures will be taken to increase foreign exchange reserves, and reforms will be introduced in state institutions.

PM Shehbaz hails IMF’s $3bn stand-by arrangement with Pakistan

After the approval of the IMF board, Pakistan will get the instalment of $1.1 billion within three to four days.

The IMF and Pakistan have reached $3 billion nine-month SBA, after the country failed to complete yet another IMF Extended Fund Facility (EFF) programme of 6.5 billion dollars, which ended on June 30, 2023, unsuccessfully.

The new staff-level agreement is subject to approval by the IMF Executive Board, with its consideration expected on 12th July 2023.

The IMF Executive Board has issued meetings scheduled till 13th July 2023, but Pakistan is not on the agenda.

According to the IMF Executive Board calendar available on its website, the next meetings are scheduled for July 5, 6, 10, 12, and then on 13th 2023; however, Pakistan is not on the agenda though it could be added anytime.

Copyright Business Recorder, 2023