May 10, 2024 (MLN): Pakistan's overall performance against end-December Quantitative Performance Criteria (QPCs), Indicative Targets (ITs), and Structural Benchmarks (SBs) under the Standby Arrangement was satisfactory, the International Monetary Fund (IMF) said in the second and final review report published.
Pakistan met all seven QPCs for end-December 2023.
Floors on:
Net international reserves of the SBP
Targeted cash transfers pending
Ceilings on:
Net domestic assets of the SBP
The SBP’s FX swap/forward book
Net government budgetary borrowing from the SBP
The general government primary budget deficit
Government guarantees
Pakistan also met both continuous PCs on zero new flow of SBP credit to the government and zero external public payment arrears.
Regarding the ITs, the authorities also met all four ITs for end-December 2023:
Floors on:
Budgetary health and education spending
FBR net tax revenues
Ceilings on:
Net accumulation of tax refund arrears
Power sector payment arrears
Furthermore, The SBs on the BISP inflation adjustment, the notification of the semiannual gas tariff adjustment determination, and development of a plan to strengthen the SBP’s internal control systems in lending operations were met.
The continuous SBs on:
Not granting further tax amnesties
Avoiding new preferential tax treatments or exemptions
Maintaining an average premium of no more than 1.25% between the interbank and open market rate
Work toward amending four dedicated SOE laws (missed SB, end-November 2023) remains in progress to align legislation with requirements; the timing of its passage is contingent on the recently-seated National Assembly.
