The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas

Pakistan is gearing up for a crucial economic review as the International Monetary Fund (IMF) prepares to send its delegation in November to evaluate the progress of the $3 billion stand-by arrangement (SBA). This anticipated review has significant implications, with Pakistan potentially accessing a tranche of $700 million contingent on a successful outcome.

In this forthcoming assessment, the focus will be squarely on Pakistan’s economic performance and the attainment of goals established within the context of the stand-by agreement for the July to September 2023 period.

A comprehensive overview of Pakistan’s endeavors to tackle the persistent issue of circular debt in the energy sector will be presented to the IMF delegation. Additionally, updates will be provided on the strategic revenue measures implemented to meet the ambitious tax collection target set for the current fiscal year (FY24). The discourse will also encompass the evaluation of both monetary and fiscal policies.

Another pivotal aspect of the review will be Pakistan’s progress toward achieving the petroleum levy collection target of Rs. 859 billion for FY24. The IMF delegation will be presented with the latest collection figures up until September, shedding light on the country’s trajectory.

This development follows the approval by the IMF Executive Board back in July, which sanctioned a 9-month stand-by arrangement for Pakistan, amounting to SDR2,250 million (approximately $3 billion). This measure was intended to provide support to Pakistan’s economic stabilization program. The immediate outcome of the approval was the disbursement of SDR894 million (around $1.2 billion), with the remaining funds scheduled for phased distribution over the course of the program, contingent upon two quarterly reviews.

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