ISLAMABAD – The government and the International Monetary Fund (IMF) will hold talks for the release of at least one tranche of $1.7 billion during the current financial year on February 28. An official source said that the government was hopeful of obtaining one tranche during the current financial year, as despite difficulties improvements were made on the economic front.
The release of one tranche from IMF was crucial as it would help in getting the release of committed funds from other bilateral and multilateral donors. He said that the government was hopeful of a positive response from IMF as significant improvements were made that have helped retain the fiscal deficit at 2.8 percent of GDP during the first six months of the current fiscal year as against the target of 4.7 percent of GDP.
Since exports and remittances were on the rise, the country was in a stable position. The revenue generation was estimated to reach Rs 1630 billion during the current fiscal year against the target of Rs 1667 billion. However, if the flood tax was not imposed then the revenue collection would reach Rs 1605 billion.
In both the scenarios, the government would be able to maintain the fiscal deficit within the agreed limit, the source said, adding that would pave the way for the release of at least one tranche from IMF to meet the target.
