IMF asks Pakistan to revise budget as deadline looms: Report

Islamabad [Pakistan], June 25 : The International Monetary Fund (IMF) has asked Pakistan to revise the budgetary framework for 2023-24 before its passage from the parliament in order to strike a staff-level agreement, The News International newspaper reported.

The News International is an English-language newspaper in Pakistan.

The IMF added that without changes in the budget, the staff-level agreement with the IMF cannot be achieved.

Pakistan and the IMF are making efforts to evolve a broader agreement on the budgetary framework which, if struck, could pave the way for approval of the budget for 2023-24 with revisions, including jacking up the FBR's tax collection target and slashing expenditures.

A top official privy to the ongoing negotiations between Pakistan and the IMF held virtually from Islamabad and Washington on Friday, said: "The Pakistani side shared the revised budgetary estimates for next fiscal year with the IMF but so far a broader agreement is yet to be achieved."

That's why the windup speech of the Minister for Finance was delayed; earlier it was expected to be held on Friday. Now it might be done on Monday.

In the aftermath of Prime Minister Shehbaz Sharif's meeting with the IMF's MD in Paris, Pakistan and the IMF held two rounds of virtual talks in the last 24 hours in an effort to move towards a staff-level agreement.

The Pakistani authorities shared revised budgetary estimates for the next fiscal year with the IMF review mission with expectations to evolve a broader agreement on the budgetary framework, it is yet to be seen to what extent both sides reconcile their differences and evolve a consensus on major thorny issues.

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