Pakistan is poised to finalize an agreement with the International Monetary Fund (IMF) next week, marking a significant step forward for the country’s financial stability. Sources familiar with the matter have revealed that this agreement will pave the way for Pakistan to receive the final installment of $1.1 billion under the SBA Agreement.
In discussions with the IMF, Pakistani officials have pledged to increase electricity tariffs starting from July 1st, and to implement adjustments in fuel prices periodically to ensure cost recovery. Additionally, assurances have been made to safeguard individuals enrolled in the BISP program, a key focus for the IMF delegation.
The IMF has emphasized the importance of maintaining a stringent monetary policy and stable market exchange rates, urging Pakistan to adhere to these principles.
Currently, an IMF delegation is in Pakistan conducting the second review under the SBA loan program, assessing the country’s progress and economic reforms.
However, it’s worth noting that the Pakistani government has rejected the IMF’s call for a revisit of the National Finance Commission (NFC) Award. This demand, made during the second review talks of the $3 billion loan program, was based on concerns over federal funding shortages. Nonetheless, Islamabad has stood firm on its decision regarding the NFC Award, signaling a difference in priorities between the two parties.
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