ISLAMABAD (Web Desk) – Finance Minister Ishaq Dar on Monday said Pakistan and International Monetary Fund (IMF) had successfully completed 7th review of the extended fund facility paving the way for release of next tranche of 506 million dollars to Pakistan by June this year.
He said this while briefing newsmen after completion of final round of talks with IMF in Islamabad this afternoon.
He said it is for the first time that Pakistan has reached the level of 7th review with IMF under any program.
The Finance Minister said revenue collection by FBR (Federal Bureau of Revenue) in first ten months of the current financial year is 1,969 billion, which is 12.8% increase over 1,745 billion rupees of comparable period last year.
He said Pakistan is determined to achieve the fiscal deficit target of 4.9% this year and next year’s target has been kept at 4.3% in view of expenditure on Operation Zarb-e-Azb and rehabilitation of TDPs (temporarily displaced persons).
Current Account Deficit, which usually remained over two percent for a year, is likely to be under one percent this year because of decline in prices of oil in the international market and increased remittances by overseas Pakistanis. Overseas Pakistanis sent 14.97 billion dollars in first ten months as against 12.9 billion same period last year, showing sixteen percent increase.
The Finance Minister said foreign exchange reserves with State Bank of Pakistan were 17.6 billion dollar and the Government has a target of crossing the level of reserves above 18.5 billion dollars in coming Ramazan.
He said in April this year, inflation was recorded at 2.1% which is lowest in twelve years. The average consumer price index for first ten months was 4.8% as against 8.4% same period last year.
The Finance Minister said National Identity Card number would be the tax number from next financial year.
The IMF Mission Chief confirmed that staff level agreement has been reached with Pakistan and after approval of the Board; Pakistan would receive next tranche under extended fund facility in June this year.
He acknowledged that Pakistan’s economy has made significant progress and shown resilience. The IMF official said Pakistan has successfully met all performance criteria agreed with the Fund.
