IMF agrees to extend Pakistan’s loan program, demands immediate withdrawal of subsidies
The International Monetary Fund (IMF) has agreed to extend the loan program for Pakistan by one year.
Talks are underway between Pakistan and IMF on issues, Pakistan will start technical level talks with IMF next week.
According to sources, the IMF demanded that Pakistan withdraw its recent subsidies as soon as possible and review the figures for the change in the target set in December. The IMF wants Pakistan to deviate from the target set in December at least. With this, IMF wants to agree on a comprehensive strategy for the budget.
Sources said that the extended program of the IMF is coming to an end in September. The IMF will send a mission to Pakistan in mid-May to complete the negotiations at the staff level. Pakistan has requested to extend the program of the IMF by one year and the IMF has agreed to extend the program for one year.
According to sources, it has been agreed in negotiations with the IMF that the subsidies on fuel, oil and electricity of the previous government will be withdrawn, oil and electricity prices will be increased before the mission arrives. After which the IMF board will approve the next installment to Pakistan.
The annual meeting of IMF and World Bank with Pakistan is being held in Washington in which Federal Finance Minister Miftah Ismail is representing Pakistan.