Pakistan, IMF reach agreement over release of nearly US$1bln

Adviser to Prime Minister on Finance Shaukat Tarin announced on Monday that Pakistan and International Monetery Fund (IMF) have reached a staff-level agreement and the latter would release nearly US$1 billion of the US$6 billion loan tranche.

While addressing a presser along with the federal ministers, Shaukat Tarin said that IMF had accepted an improvement in the economy of the country despite the COVID pandemic.

“Our journey towards economic progress is ongoing despite a global pandemic,” he said.

The finance adviser said that improvements are needed in the power sector, and the State Bank of Pakistan and measures were underway to clarify the working procedure of the central bank.

“We are implementing the reforms agenda of the government successfully and the IMF has also asked the government to continue with its tax reforms,” he said adding that they conveyed to the Fund that the tax collection remained higher than the target in four months by Rs200 billion.

He further shared that after an agreement with the IMF, the World Bank and Asian Development Bank would also share their resources with the country.

Shaukat Tarin said that taxation on fuel products needed to be hiked and from now onwards, they would require raising LDA on fuel prices by Rs4 per litre in a month.

He further shared that the IMF has lauded the Ehsaas and Kamyab Jawan programmes and there is a need to provide a targeted subsidy to the underprivileged segments of the society.