The International Monetary Fund (IMF) had set 28 requirements for the $1.1 billion tranche, 16 of which Pakistan has utterly failed to meet, including the essential requirement to raise foreign exchange reserves, which have instead become shockingly negative by roughly $11 billion.
According to the combined report of the 7th and 8th program reviews that the IMF released on Friday, Pakistan’s failure to comply with the conditions forced the international lender to impose eight additional requirements on it in addition to setting new deadlines for completing the actions that were still outstanding.
According to the study, the Pakistan Tehreek-e-Insaf-led administration had a poor track record, giving the international lender ample justification for imposing strict conditions on the resumption of the bailout package.
Due to slipups that happened prior to the coalition administration taking office, some of the requirements that had to be implemented during the final quarter of the fiscal year were not met. The PML-N-led coalition government was unable to swiftly change course, which would have restored the trust that had been lost with the international lender.
To enable the restart of the delayed program and the release of the $1.1 billion tranche, the IMF board had to grant a waiver this week.
The nation failed to meet the requirements for boosting its foreign exchange reserves and bringing down the primary budget deficit to a manageable level.
Additionally, it was unable to guarantee full Benazir Income Support Program payments, sufficiently support health and education, continue to be unable to pay tax refunds, and limit losses in the power sector.
Days before he was removed from office, former prime minister Imran Khan, who had previously opposed tax amnesty schemes but only while he was not in the office, announced another one.
The report stated that he also permitted tax exemptions and that his government was unable to advance the reform agenda.
