Significant progress made in budget for 2022-23: IMF

The International Monetary Fund (IMF) is headquartered in Washington. — AFP

WASHINGTON: The International Monetary Fund (IMF) on Wednesday confirmed that talks with Pakistan have been successful for the revival of a $6 billion line of credit that was stalled due to policy violations by the previous government.

IMF Resident Chief Esther Perez Ruiz said in a statement: “Discussions continue among IMF staff and officials on policies to strengthen macroeconomic stability in the coming year, and significant progress has been made in the FY23 budget. “

The latest development comes a day after Federal Revenue and Finance Minister Mifta Ismail indicated a revival of the agreement with the IMF within a day or two.

“I have high hopes that the IMF program will be revived soon,” the Finance Minister said while talking to reporters.

Following the depreciation of the Pakistani rupee against the US dollar, the recent agreement with the global lender was of utmost importance to lift the country out of the ongoing economic crisis.

In order to meet the conditions of the IMF, the government had to take some stringent measures, such as banning the import of certain items and removing subsidies which resulted in an unprecedented increase in POL. [petrol, oil, lubricants],