Pakistan has reached a staff-level agreement with the International Monetary Fund (IMF), promising to increase the prices of electricity and gas promptly. The country’s economic and financial situation has improved, with better policy management leading to restored economic growth and confidence. The primary balance is expected to remain at Rs 401 billion, which is 0.4 percent of the economy.
However, inflation is still well above the target, and ongoing policy and reforms are necessary to address economic weaknesses. Pakistani authorities are committed to increasing the tax base and expressed their determination to stop the increase in circulating debt by promptly increasing energy prices. The State Bank of Pakistan will ensure transparency in the foreign exchange market.
