Cover -- CONTENTS -- ECONOMIC BACKGROUND -- OUTLOOK AND KEY RISKS -- ARTICLE IV: DISCUSSIONS: TOWARD HIGHER AND MORE INCLUSIVE GROWTH -- A. Return to Fiscal Sustainability -- B. Realigning Monetary Policy for Macroeconomic Stability -- C. Safeguarding Financial Sector Stability -- D. Structural Reforms for Fiscal Consolidation and Economic Growth -- PROGRAM DISCUSSIONS -- OTHER ISSUES -- STAFF APPRAISAL -- BOXES -- 1. External Sector Assessment -- 2. Revenue Sharing Arrangements in Pakistan: A Challenge to Fiscal Consolidation -- 3. Risk Assessment Matrix -- 4. Pakistan's Vulnerability to Food and Oil Price Shocks -- 5. Unemployment in Pakistan -- 6. Reducing Energy Subsidies -- 7. Overview of Pakistan's Power Sector -- 8. BOP Projections and External Financing Requirement -- FIGURES -- 1. Selected Economic Indicators, 2008-13 -- 2. Selected Financial Indicators, 2008-13 -- 3. Selected Banking and Financial Indicators -- 4. Public Debt Sustainability: Bound Tests -- 5. External Debt Sustainability: Bound Tests -- TABLES -- 1. Selected Economic Indicators, 2009/10-2013/14 -- 2. Medium-Term Baseline Macroeconomic Framework, 2009/10-2017/18 -- 3. Medium-Term Program Macroeconomic Framework, 2009/10-2017/18 -- 4. Balance of Payments, 2009/10-2017/18 -- 5a. General Government Budget, 2008/09-2013/14 -- 5b. General Government Budget, 2009/10-2013/14 -- 5c. General Government Budget, 2011/12-2013/14 -- 6. Monetary Survey, 2009/10-2013/14 -- 7. Medium-Term Fiscal Framework, 2009/10-2017/18 -- 8. Financial Soundness Indicators for the Banking System -- 9. Indicators of Fund Credit, 2012/13-2017/18 -- 10. Selected Vulnerability Indicators, 2009/10-2017/18 -- 11. External Debt Sustainability Framework, 2008-18 -- 12. Public Sector Debt Sustainability Framework, 2008-18 -- 13. Schedule of Reviews and Purchases.

14. Quantitative Performance Criteria and Indicative Targets for FY2013/14 -- 15. Prior Actions and Structural Benchmarks Under Extended Fund Facility -- APPENDIX -- I. Letter of Intent -- Attachment I. Memorandum on Economic and Financial Policies for 2013/14-2015/16 -- Attachment II. Technical Memorandum of Understanding -- CONTENTS -- RELATIONS WITH THE FUND -- RELATIONS WITH THE WORLD BANK -- RELATIONS WITH THE ASIAN DEVELOPMENT BANK -- STATISTICAL ISSUES -- TABLE -- PAKISTAN: TABLE OF COMMON INDICATORS REQUIRED FOR SURVEILLANCE -- STAFF REPORT FOR THE 2013 ARTICLE IV CONSULTATION AND REQUEST FOR AN EXTENDED ARRANGEMENT UNDER THE EXTENDED FUND FACILITY-SUPPLEMENTARY INFORMATION -- TABLE -- Table 2. Pakistan: Prior Actions and Structural Benchmarks Under Extended Fund Facility -- IMF Executive Board Approves 3-Year, US6.64 Billion Extended Arrangement for Pakistan -- ANNEX -- Recent Developments -- Program Summary -- TABLE -- Pakistan: Selected Economic Indicators, 2009/10-2013/14 -- IMF Executive Board Concludes the 2013 Article IV Consultation with Pakistan -- Executive Board Assessment -- TABLE -- Pakistan: Selected Economic Indicators, 2009/10-2013/14 -- Statement by Jafar Mojarrad, Executive Director for Pakistan and Muhammad Sethi, Senior Advisor to Executive Director September 4, 2013 -- Fiscal consolidation -- Monetary and exchange rate policies -- Structural reforms -- Financial sector reform -- Conclusion.