As part of the lender's assistance programme for the cash-strapped country, the International Monetary Fund (IMF) is getting ready to talk about Pakistan's financial year 2024 budget plans, which the country's parliament would need to approve by June, the IMF's Pakistan mission chief told Reuters on Thursday.

Former Pakistani foreign minister Miftah Ismail stated that after evaluating the Budget, which would be unveiled in June of this year, the Washington-based financial organisation will conclude the staff-level agreement. 

The staff-level agreement will be finalised after the Budget materials are presented with the IMF and if it is approved. Prior to that, the federal government began making plans for Budget 2023–24.

The IMF's demands are reportedly likely to be implemented in the budget for 2023–24. The fiscal year 2023–24 budget will be the most challenging in Pakistan’s history.

"The Budget will combine the nation's mini-budgets, and 680 billion in taxes will be levied on the populace. Additionally, the tax relief for the protected class may be restricted more, as per reports.

While attempts to secure USD 1.1 billion as part of a USD 6.5 billion bailout have failed, Pakistan's economy has been in disarray for months due to an acute balance of payments crisis.

They have been negotiating since early February on a deal that would release USD 1.1 billion to the cash-strapped, nuclear-armed country of 220 million people, and it is extremely important for the liquidity-challenged country. Both sides are locked in a debate over an unfinished loan programme necessary for the ongoing financial collapse.

The Pakistani government has implemented a number of economic changes, including tax increases, fuel price increases, and other changes required by the lending institution.

The money is a component of a USD 6.5 billion bailout package that the IMF authorised in 2019 and which Pakistan needs to avoid defaulting on its external debt.

The Washington-based financial organisation is still looking for additional guarantees to confirm Pakistan has met the requirement of arranging the USD 6 billion financing in order to achieve a staff-level agreement, nevertheless.

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