Pakistan is facing a severe economic crisis that has been exacerbated by the global energy crisis, the COVID-19 pandemic, and rising inflation. The agreement involves the implementation of prior actions, notably on fiscal and institutional reforms, before final approval is given by the IMF’s executive board. It has also agreed to broaden the tax base by bringing more people into the tax net and enhancing compliance. The government has agreed to grant more independence to the SBP in setting monetary policy and managing foreign exchange reserves. These reforms are aimed at addressing some of the structural problems that have plagued Pakistan’s economy for decades.

Source: The Express Tribune July 24, 2023 20:32 UTC