Impact of IMF Targets and Conditionalities on the Economy Chapter 5: Impact of IMF Targets and Conditionalities on the Economy The seventh and eight reviews of the Extended Fund Facility with Pakistan have been completed by the IMF and a loan installment of$1.17 billion released under this facility. Further, the duration of the Program has been extended from September 2022 to June 2023 and the total amount of the loan increased by$997 billion. There will be three more quarterly reviews. The objective of this chapter is to identify the type and intensity of impact of attempts to achieve the targets in the Program for 2022-23 and of implementing the reforms and conditionalities agreed to by the Government of Pakistan. The chapter is in five parts. Part 1 looks in depth at the Memorandum of Economic and Financial Policies that the Government of Pakistan has agreed to implement in 2022-23 with the IMF. At this point, it needs to be emphasized that the fulfillment of IMF conditionalities through actions and reforms is perhaps more wide-ranging and structural in nature than the hitherto been the case in earlier IMF programs with Pakistan. Part 2 presents the key macroeconomic targets for 2022-23 in the Program. An assessment is made of the likelihood of achievement of these targets in light of implementation of reforms in the Memorandum. There is need to emphasize here that these targets were finalized prior to the mammoth floods hitting Pakistan and therefore do not reflect the large negative impact of these floods on the national economy. Part 3 highlights the quarterly performance criteria and structural benchmarks which will form the basis of the three quarterly reviews by the IMF in 2023-23. An assessment will be made on the extent to which these performance criteria are likely to be achieved. Part 4 looks at the projection of the external financing requirements of Pakistan in 2022­23 as assessed by the IMF and the Federal Ministry of Finance along with the SBP. The proposed financing plan is highlighted and assessment made of the probability of successful implementation of this plan. 61