According to well-placed sources in the Ministry of Finance, the government is working on seeking relief within the IMF loan programme to accelerate economic growth, attract investment, reduce unemployment and poverty, lower power tariffs, provide tax incentives, and secure a cut in the policy rate. Sources said the government plans to formally request significant changes in the structure of the IMF programme.
These proposals have been discussed at the highest level of government and include seeking relaxation in primary balance and provincial budget surplus targets in the upcoming fiscal year, in consultation with the IMF. It is also under consideration that a higher fiscal deficit target may be allocated in the next budget to create fiscal space. The Ministry of Finance has shared these proposals with Prime Minister Shehbaz Sharif.