On 18th May 2022, the Pakistani Finance Minister, along with Pakistani officials and representatives of the International Monetary Fund (IMF), held a week-long negotiation in Doha, the capital of Qatar, to discuss the release of US$1 billion in aid funds to Pakistan.
Pakistan’s Finance Minister Miftah said the IMF was dissatisfied with the government’s subsidies for fuel and electricity, and he hoped to find a mutually acceptable solution through negotiations.
The International Monetary Fund has asked Pakistani policymakers to tighten fiscal and monetary policy further. The IMF has also asked the Federal Revenue Board of Pakistan to raise its tax target for FY 2022-23 to Rs 7.255 trillion from its expected target of Rs 6.1 trillion. IMF suggested that the Pakistani side further increase the policy rate by 100 to 150 basis points in the future monetary policy.
In 2019, the Pakistani government and the International Monetary Fund reached a three-year, $6 billion aid deal. So far, Pakistan has received $3 billion in aid funds. But the International Monetary Fund has been slow to disburse the latest aid funds due to concerns about Pakistan’s fiscal deficit and other economic problems.