ISLAMABAD: Pakistan will begin important talks with the International Monetary Fund (IMF) for the second review of the $3 billion Standby Arrangement (SBA) program, The News reported Wednesday.
In this regard, a formal invitation will be made to the Washington-based lender shortly following the creation and oath-taking of the federal cabinet, with talks scheduled to begin next week.
During the negotiations, Pakistan would also propose a new contract under the 36-month Extended Fund Facility (EFF).
“The size of the next EFF programme has not yet been discussed and finalised but Islamabad will look into the possibility of augmenting EFF with climate finance to maximise the size of the programme from $6 billion to $8 billion,” sources familiar with the matter told the newspaper.
The first and main challenge for the incoming finance minister would be to make all-out efforts to meet the Federal Board of Revenue’s (FBR) tax collection target of Rs890 billion for March 2024 by delivering on the agreed-upon quarterly (Jan-March) aim with the IMF.
“If there is any shortfall in March 2024, then the IMF may come up with additional taxation measures for the remaining period of the current fiscal year,” the official said.
