Pakistan adopts a revised budget in order to receive IMF support.

The budget for the upcoming fiscal year, which will start in one month, was approved by the Pakistani parliament on Sunday, a day after the administration made a number of adjustments to comply with the strict requirements set forth by the International Monetary Fund (IMF). The administration increased taxes and reduced public spending to lower the deficit while fighting tooth and nail to restart a stalled IMF loan programme and save the faltering economy.

Only 70 members of the 342-member National Assembly who sit on the Treasury benches and two opposition MPs were present during the session, which lacked quorum. Important members of the governing coalition, including the foreign minister Bilawal Bhutto-Zardari and his father Asif Ali Zardari, were not present.

According to Dar, Pakistan would implement additional levies to raise 215 billion rupees (21,500 crore rupees) to satisfy IMF conditions without burdening the poor or middle classes. The projected development budget, as well as the increase in pay and pensions for federal government employees, will not be affected by the operating expense reduction of 85 billion rupees (8,500 crore rupees), according to Dar.

Dar claimed that the government had sincere discussions with the IMF in Washington. He promised the legislature that once the problems with the IMF were resolved, the deal’s complete contents will be posted on the website of the finance ministry. The modifications are the result of discussions Prime Minister Shehbaz Sharif had with IMF Managing Director Kristalina Georgieva last week in Paris.

In a third meeting with Georgieva, Sharif reaffirmed to the cash-strapped Pakistan his intention to uphold loan covenants, according to local media on Sunday. On June 30th, the Extended Financing Facility (EFF), which was completed in 2019, ends. As part of a broader $6.7 billion bailout deal with the IMF, Pakistan has been attempting to secure $1.2 billion in funding that has been locked up since last October.

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