IMF tells Pakistan to remove petroleum subsidies for revival of loan programme
The International Monetary Fund (IMF) has emphasised Pakistan to abolish subsidies on petroleum products and electricity, among other conditions, for the revival of stalled $6 billion Loan Programme.
The IMF has refused to release the next tranche of the loan to Pakistan if it does not raise the prices of petroleum products.
Sources said that the IMF had agreed to all the demands of Pakistan but the issuance of installment and extension of program duration is conditional on increase in prices of petroleum products.
The Pakistani delegation will respond to the IMF after talks with the Prime Minister.
According to sources, the IMF and Pakistan have agreed to continue talks.
IMF calls for end to petrol and electricity subsidies
The IMF has issued a statement of dialogue with Pakistan calling for an end to subsidies on petrol and electricity.
According to the IMF statement, the forthcoming budget has also emphasized on achieving the objectives of the loan program while it has been agreed to continue the talks.
The IMF statement said that it is committed to ensuring macroeconomic stability for the benefit of all Pakistanis. There were very constructive talks with the Pakistani authorities.
The IMF also said that Pakistan deviated from the policies set out in the previous review.
The finance ministry said talks with the IMF would continue early next week, with the finance minister returning to Pakistan from Doha tomorrow.
Notably, the policy talks between Pakistan and IMF took place in Doha in which Finance Minister Miftah Ismail and Acting Governor SBP also participated.