Islamabad: Pakistan has formally submitted to the International Monetary Fund (IMF) its Memorandum of Economic and Fiscal Policies (MEFP) and see macro-economic stability as the growth strategy for the coming three years.
“Yes, we have given it (MEFP) to the IMF,” confirmed Finance Minister Asad Umar when approached. “It’s under discussion” he told media and didnot go in further details “they (IMF) may have something to add and come back to us”. Asad Umar said
Government under the MEFP plan is adjusting about 2.5% of the GDP in three years. This is to bring down the fiscal deficit by 4% at the end of 36-month programme.
The official further stated that this time implementation is little different.“Most of the pain would be immediate this time in the form of revenue measures and energy pricing.”
This means that adjustment will entail more than 1 trillion Rupees and financial space with increased revenue and decreased expense.
On top of that government is also implementing series of taxes to increase the revenue while IMF demanded new areas such as agriculture, real estates and other sectors to be brought under taxation policy.
IMF mission is likely to return to Islamabad after the Christmas holidays for finalising the bailout packages it could be approved by the Fund Executive board for approval.