The government informs the IMF that all prior actions have been taken
Description:
The federal government has given the International Monetary Fund (IMF) its word that it will adhere to the five primary prerequisites needed to obtain the loan programme.
The federal government stated in its Letter of Intent (LoI) to the IMF that it has approved the budget for Fiscal Year 2023 (FY23) and has started the personal income tax (PIT) reform process in response to the Fund"s demands.
Additionally, the July signing between the provincial and federal governments satisfies the requirement for MoUs to be signed in order to satisfy fiscal targets.
The primary demand of the earlier activities is the cancellation of the February Relief Package, which was issued by the previous administration. A petroleum development levy (PDL) of Rs. 10 per litre has been levied on gasoline and a levy of Rs. 5 per litre has been imposed on diesel as of July 1 as a result of the package"s reversal. General fuel subsidies of Rs. 5/Kwh have also been withdrawn.
The government adhered to the policy and hiked the PDL on gasoline and diesel by Rs. 10 and Rs. 5, respectively, on August 1 in order to reassure the IMF. The government has promised to raise the PDL at the same rate beginning with September 1 and to keep doing so each month until it reaches Rs. 50 per litre for both fuels.
To complete all of the above measures, arrangements have also been made to set up debt management offices (DMOs).
