Pakistan receives MEFP from IMF for 7th, 8th reviews

June 28, 2022 (MLN): The government of Pakistan has finally received the Memorandum of Economic and Financial Policies (MEFP) from the International Monetary Fund (IMF) earlier this morning which is a crucial step to validate that both sides have reached an agreement for the revival of $6 billion program.

Taking to his Twitter handle, Finance Minister for Finance and Revenue Miftah Ismail informed on Monday, “Early this morning, the Government of Pakistan has received a MEFP from the IMF for combined 7th and 8th reviews.”

On June 21, 2022, the Pakistan side and IMF reached an understanding on the federal budget for FY23 as per which the Pakistan side agreed to generate Rs436bn more taxes and increase the petroleum levy gradually up to Rs50 per litre to avail of the extended fund facility (EFF).

IMF Resident Representative in Pakistan, Esther Perez Ruiz said, “Discussions between the IMF staff and the authorities on policies to strengthen macroeconomic stability in the coming year continue, and important progress has been made over the FY23 budget.”

It was discussed that the IMF mission will finalize monetary targets with the State Bank over the next couple of days and, in the meantime, share the draft of a MEFP that contains a set of prior actions that would be necessary for implementation before the IMF board takes up Pakistan’s case for disbursement of about $1bn.

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