Summary The IMF stresses broadening the tax net and decreasing subsidies on the energy sector.
ISLAMABAD (Dunya News) - Pakistan and the International Monetary Fund have agreed to sign an agreement regarding new debt arrangements.
Talking to the media after the meeting with IMF officials, Federal Minister Ishaq Dar said IMF would issue over five billion dollars soft-term loan to Pakistan that would be returned within three year.
“The loan has been acquired in order to improve economic condition of the country,” he said.
Negotiations between the Ministry of Finance and IMF officials continued for two weeks‚ which ended successful.
Giving briefing to media persons Finance Minister Ishaq Dar said purpose of agreement with IMF was to bring stability and improvement of economy. He said the loan has been accepted to save Pakistan from defaulter status.
Dar said measures would be adopted to improve the performance of the public sector and sick institutions could be privatized. “We inherited a shaken economy,” he said.
Speaking on the occasion IMF Country Manager Jeffrey Franks said Pakistan provinces will have to cooperate with the federal government for improvement of economy.
Franks said Pakistan would have to take steps to improve the GDP rate.
The IMF has stressed broadening the tax net and decreasing subsidies on the energy sector.
Pakistan will have to increase power tariff and refurbish public sector institutions, according to the IMF offcial.
Pakistan had requested a new bailout loan package from the International Monetary Fund following weeks of talks with an IMF delegation.
Anxiety over the nation s struggling economy is one of the many challenges facing its new government.
With reserves shrinking by around $500 million a month and with many Pakistanis already angry over unemployment, high food prices and crippling power cuts, Prime Minister Sharif is keen to be seen as a decisive man capable of overhauling the economy. IMF reform packages usually come with conditions that are very unpopular.
