ISLAMABAD: Pakistan is likely to sign the staff-level agreement with the International Monetary Fund (IMF) today.
According to sources, Pakistan has met 90 percent conditions for the staff-level agreement with IMF.
Sources said that Pakistan has also abolished the scheme to bring $0.1 million to the country annually and the interest rate has been increased by one percent. The basic interest rate has been hiked from 21 percent to 22 percent.
The memorandum of economic and financial policies which includes nine tables has been sent to IMF and the financial experts of the IMF will analyze the memorandum now, sources added.
Source further revealed that talks for the staff-level agreement will take place tonight and Finance Minister Ishaq Dar will finalize the staff-level agreement with the IMF.
Earlier, Federal Minister for Finance and Revenue Ishaq Dar said that Pakistan has fulfilled all necessary conditions of the International Monetary Fund (IMF) and “no hurdle is now left” in the signing of a staff-level agreement.
He noted that the government has introduced a number of changes to its fiscal 2024 budget in a last-ditch effort to clinch a stalled rescue package with the international lender.
For the fiscal year starting next month, the federal government will raise a further Rs215 billion in new tax and cut Rs85 billion in spending, as well as a number of other measures to shrink fiscal deficit, he said.
It is pertinent to mention here that Prime Minister (PM) Shehbaz Sharif met with IMF Managing Director Kristalina Georgieva on the sidelines of the Global Financing Summit in Paris.
During the meeting, the two exchanged views on the ongoing programs and cooperation between Pakistan and IMF. Recalling their recent telephone conversation on 27 May 2023, the premier apprised Ms. Georgieva of Pakistan’s economic outlook.
