Pakistan faces challenges in meeting five critical International Monetary Fund (IMF) targets required for the disbursement of its second loan tranche.
Among the major concerns is the delayed privatization of Distribution Companies (DISCOs), which may not be completed by January. Additionally, the target to maintain foreign exchange reserves covering three months of imports by March is uncertain.
Revenue collection goals for December and the implementation of agricultural income tax by January 1 are also at risk. The assets declaration program, scheduled for January, faces similar delays.
Failing to meet these targets could complicate the ongoing IMF program, jeopardizing future loan installments. To ensure continued support, tougher measures might be necessary if current targets remain unmet.
Fuel Price Impact
Meanwhile, rising petroleum prices have compounded economic pressures. High-speed diesel prices have increased by Rs 12.14 per liter, and petrol by Rs 5.07 per liter since mid-October. Restrictions under the IMF program have reportedly prevented the government from reducing levies to curb these hikes.
The situation underscores Pakistan's struggle to balance fiscal responsibilities with economic stability under IMF conditions.