[Economy] IMF’s EFF, RFI, SBA Loan Windows for Pakistan Explained for UPSC by
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 Published On Sep 29, 2024

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In this video, Dr. Mrunal Patel (‪@TheMrunalPatel‬ ) will discuss the International Monetary Fund's recent approval of a $7 billion bailout package for Pakistan, aimed at macroeconomic stability and fiscal consolidation. The package, part of the 37-month Extended Fund Facility, will provide an initial loan tranche of less than $1.1 billion at a 5% interest rate. This is Pakistan's 25th IMF program since 1958.

Key reforms include overhauling the agriculture income tax, limiting subsidies, and a commitment to additional taxes ranging from Rs1.4 trillion to Rs1.8 trillion. The program also requires cooperation between the federal and provincial governments, aiming for transparency and improved fiscal responsibility.

Notably, the agriculture income tax is set to rise significantly, and further subsidies on utilities will be halted. The government has committed to a primary budget surplus of 4.2% of GDP over the program's duration, posing challenges for existing taxpayers.

We also explore the implications of these conditions and the ongoing issues of debt sustainability. Tune in as we break down the details of this crucial economic development for Pakistan! Don’t forget to like, share, and subscribe for more updates for UPSC!

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