Pakistan-IMF to finalize bailout package today
Islamabad: The federal government of Pakistan and the International Monetary Fund (IMF) are close to finalizing a bailout package worth almost seven billion dollars today.
The last round of talks to finalize the agreement will take place in the federal capital. Sources within the Ministry of Finance say that the package will be worth approximately $6.4 billion dollars.
Under the proposed terms of agreement, Pakistan will have to raise power and gas tariffs, revise taxes and withdraw tax exemptions and concessions. New taxes worth 700 billion will be revealed in the upcoming budget to be presented in June.
It is also expected that interest rates would be raised to 12 percent with the government also agreeing to not control dollar rates. The government will also inform the IMF of its plans to privatize those state organizations that are currently losing money.
Economists and finance analysts have expressed reservations about the terms of the package, citing probable inflation and unemployment rise as hindrances to growth.