February 18 2010
The IMF has observed that heightened military operations, revenue deficits and delays in disbursements of pledged donor support have complicated fiscal management leading to spiraling inflation in Pakistan.
According to a statement by an IMF Staff Mission on the conclusion of the fourth review of Pakistan's Stand-By Arrangement (SBA) in Dubai , Pakistan's economy is showing signs of recovery and the electricity reform process is underway though this has been slower than planned.
"Discussions focused on the fiscal programme and the monetary policy stance. On the fiscal side, shortfalls in budget revenue and expenditure pressures, if any, shall be met through adjustments in expenditure and additional revenue measures, if necessary, to assure the achievement of the programmes fiscal targets for 2009-10," the IMF said.
Led by Adnan Mazarei , the IMF mission staff met with Pakistani authorities in Dubai over the past week to initiate discussions on the fourth review under Pakistan's SBA. The IMF mission staff will prepare a report on the fourth review under Pakistan's SBA that is scheduled for consideration by the IMF Executive Board in late March.
According to the IMF, "Structural reforms are progressing. The amendments to the State Bank of Pakistan Act have been submitted; tax administration reforms are continuing; the amendments to the Banking Companies Ordinance have been approved by the National Assembly. The Pakistani authorities reaffirmed their commitment to the introduction of the VAT by July 1, 2010 and the draft VAT law will be soon submitted to parliament and provincial assemblies." |
