Tough fiscal measures must to unlock IMF tranche

The government may need to implement a combination of revenue measures and fiscal tightening — primarily by curbing development spending — in the final quarter of the current fiscal year before securing the next $1.1 billion disbursement from the International Monetary Fund (IMF). Informed sources said that new fiscal measures, likely to take effect from April 1, could involve a three-pronged approach: stricter control over the Public Sector Development Programme (PSDP); enhanced revenue collection from sectors with lenient enforcement, such as retail and real estate; and activation of contingency measures committed under the $7 billion Extended Fund Facility (EFF) last year to make up for the revenue shortfall in the first half of the year as well as subsequent months.