Ministry of Finance (MoF) has asked all Ministries/ Divisions and entities to meet commitments made with the IMF within the stipulated time to ensure the successful completion of the review and the overall program, well-informed sources told Republic policy.
These instructions, sources said, have been issued by Secretary Finance Imdadullah Bosal in letters to all the Ministries/ Divisions and entities.
According to sources, the Secretary of Finance has stated that the second review under the Stand-By Arrangement (SBA) is scheduled to be held in February 2024; therefore, all commitments, including Structural Benchmarks, Quantitative Performance Criteria, Indicative Targets and other obligations related to 2nd Quarter must be met as agreed with the IMF.
The Memorandum of Economic and Financial Policies (MEFP) agreed with the IMF provides the following relevant to each Ministry/ Division/ Organization/ Wing.
NEPRA and Power Division are to submit update on containing spending, especially by limiting energy subsidies, as also to be reflected in the cabinet-approved update of the circular debt management plan (CDMP) for FY24 by end-July 2023, primarily through notification of the Annual Rebasing (AR) of the power tariff for FY24 in full and with effect from July 1, 2023 as determined by the Regulator in July 2023, continuation of regular tariff adjustments in line with established formulas promptly, and acceleration of structural cost-reducing reforms.
