IMF deal reached: Pakistan’s path ahead to recovery

Finally, the International Monetary Fund (IMF) deal has been clinched. After months of uncertainty about mistrust between Pakistan and the IMF with constant engagement, negotiations and conclusions, the authorities have reached an agreement. The lender is rightly perturbed to see the borrower being constantly unable to repay the previous debt and yet asking for more. But after observing the political willingness and a geopolitically responsible entity, the IMF has again come to the rescue and Pakistan has another shot at achieving sustainable growth and bringing prosperity to 250 million people. The staff-level agreement (SLA) worth $7 billion has been reached for a 37-month programme to focus primarily on the following: 1) Under fiscal consolidation, tax revenues to grow 1.5% of GDP in FY25 and 3% by FY27 (ambitious)