The caretaker government is taking strategic measures to ensure a smooth economic transition for the incoming government, signaling discussions about a potential new loan program with the International Monetary Fund (IMF).
Officials from the Ministry of Finance disclosed that an economic blueprint is being prepared to sustain existing economic policies, encompassing various sectors such as digital markets, real estate, and property, which will be brought into the tax net.
Anticipating the need for external financing amounting to $25 billion in the current fiscal year, the government plans to secure funds from Gulf-friendly countries, China, and commercial banks. This move aims to bolster economic stability and fulfill financial obligations.
Sources revealed that the caretaker government has conveyed assurances to the international lender regarding timely general elections, reinforcing a commitment to political stability. Additionally, China has pledged to extend further debt rollover for two years, fostering economic cooperation.
To facilitate this economic agenda, a meeting with the IMF Executive Board is slated for December 7, expected to yield $700 million after the staff-level agreement. The caretaker government envisions a thorough review process, estimating 6 to 8 weeks until the board meeting following the agreement.
In alignment with the IMF’s conditions, the government is poised to broaden the tax net by incorporating at least one million new taxpayers this fiscal year. Financial support from Gulf-friendly countries is anticipated to reach $1 billion, complemented by an expected $1.2 billion from the Chinese Exim Bank, which has committed to a two-year loan rollover.
Moreover, the caretaker government has affirmed adherence to a stringent monetary policy to combat inflation, pledging to refrain from administrative interventions that could influence the rupee's valuation against the dollar.
