IMF team to review Pakistan's economic situation by late October: Report

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The Express Tribune newspaper said that during the meeting with the International Monetary Fund (IMF) mission, the caretaker government will also discuss reforms in various sectors, including taxes and energy. The report said once the economic review is successfully completed, Pakistan will receive the next installment of USD 700 million from the IMF after its board's approval. The Washington-based global lender transferred USD 1.2 billion to the cash-strapped country in July, as part of the USD 3 billion bailout program for nine months to support the government’s efforts to stabilize the country's ailing economy, PTI reported.

Although essentially a bridge loan, it offered much respite to Pakistan, which was battling an acute balance of payments crisis and falling foreign exchange reserves, the report said. Meanwhile, it has also been reported that a plan for expenditure reduction is prepared, and discussions will be held on the plan to reduce expenses, including freezing allowances, and pensions, and suspending officer recruitment. The government is also likely to be compelled to increase gas prices on IMF demands.

Pakistan’s economy has been in a free fall mode for the last many years, bringing untold pressure on the poor masses in the form of unchecked inflation. The country's inflation rose for the first time in four months after the government raised fuel prices to meet the IMF's conditions for an ongoing $3 billion bailout program. Consumer prices jumped 31.44% in September from a year earlier.