IMF Urges Pakistan to Ensure Fiscal Stability, Curb Circular Debt

Islamabad:The International Monetary Fund (IMF) has called on Pakistan to strengthen fiscal stability and take measures to reduce the country’s growing circular debt, according to reports.

The IMF mission currently visiting Pakistan has urged Pakistani authorities to take sustained steps to maintain fiscal stability in view of the rising debt burden, sources said.

The Fund also emphasized the need to control the mounting circular debt in the energy sector and explore alternative sources of revenue if any reduction in the petroleum levy is proposed.

The Pakistani side assured the IMF that the process of structural reforms would continue despite the ongoing Gulf war and its economic impact.

Officials also indicated that the burden of higher fuel prices would be passed on to consumers, while targeted subsidies have been introduced to provide relief to vulnerable segments of society.

The discussions between Pakistan and the IMF are focused on maintaining fiscal discipline, addressing energy-sector liabilities and ensuring the continuation of agreed structural reforms.