The government has met all the prior actions, including parliament approval for a personal income tax (PIT) reform, required for the successful completion of the seventh and eighth reviews under the Extended Fund Facility (EFF) of the International Monetary Fund (IMF).
This was revealed in the Letter of Intent (LoI) submitted by the government to the IMF. The Fund was informed that the government has met all four prior actions, which include
The Fund was further informed that the government met six of the eight quantitative performance criteria (QPCs). These include:
However, the government missed the two QPCs regarding:
Furthermore, the government missed three continuous performance criteria (PCs):
The government met two of the six indicative targets (ITs). We met the ITs on:
It missed four ITs:
The government requested approval from the IMF Executive Board for the following:
The LoI states that the program will continue to be monitored through quarterly reviews, prior actions (PAs), quantitative performance criteria (QPCs), indicative targets (ITs), and structural benchmarks (SBs) as described in the attached MEFP and Technical Memorandum of Understanding (TMU).
Editorial & Legal Practice Group
Authored and reviewed by the corporate law and tax litigation practice group at Javid Law Associates. Our team comprises High Court advocates, corporate legal advisors, and authorized tax practitioners across Pakistan.
Advocates High Court & Tax Counsel
Jurisdiction: Pakistan