The ruling government and the International Monetary Fund (IMF) will soon be announcing a staff level agreement, as the government has accepted most of the IMF’s demands. The announcement is expected to be released on Friday.
According to Express Tribune, sources in the Ministry of Finance stated that, the government and IMF will hold the last round of talks today (Thursday) in which the remaining concerns of the fiscal deficit and primary balance will be finalised.
In addition, Pakistani government had to come to terms with the IMF’s demands to remain afloat.
The Memorandum of Economic and Financial Policies proposed draft have been exchanged between the IMF and Pakistan, which will become the base for the three-year programme.
The IMF is expected to loan size which will equal to about 225% of Pakistan’s quota or $6.5 billion.
Pakistan already owes $5.8 billion to the IMF on account of previous loans. If all the demands are meant to be meet Pakistan and IMF will sign their 22ndprogramme on Friday.
“Unlike in the past, the IMF should finalise the loan programme keeping in mind the ground realities of Pakistan including the Pakistan Tehreek-e-Insaf’s [PTI] representation in both houses of the parliament,” said Senator Shibli Faraz, the leader of the house in the Senate.
According to the IMF mission chief Pakistan is in a grave fiscal position and withdrawal of tax concessions and privileges are part of the conditions that Pakistan has accepted to secure the bailout package.
Meanwhile, the next fiscal year’s budget will be announced on June 11 as the Federal Board of Revenue (FBR) has expressed its inability to prepare tax proposals by the end of this month.