Govt, IMF hold virtual negotiations for revival of programme

Islamabad:  The International Monetary Fund (IMF) on Tuesday asked the federal government to fulfill its conditions for revival of the programme.

The latest reports said that the IMF asked the government to end subsidy on electricity and impose tax on the basis of GDP ratio.

The demands came from the Fund during virtual negotiations with the government in Islamabad. Earlier, the Fund had asked the government to provide additional information about the budget and other areas from Islamabad before starting virtual negotiations.

آئی ایم ایف کا حکومت پاکستان سے شرائط پوری کرنے کا مطالبہ pic.twitter.com/N4UYTpwcM5

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The negotiations took place at the moment when Pakistan urgently needed to generate $10 billion in foreign loans for the remainder of the current fiscal year to prevent default.

The government official had said that the requirements for remaining load repayment and external financing of the managing current account deficit to the tune of $8 to $10 billion were not possible without support and revival of the stalled IMF programme.

During the talks on Tuesday evening, the government shared its plan and assured the IMF to erase the circular debt of gas sector by increasing gas tariff and bringing changes in the existing slabs to fulfil the IMF condition.

The government also assured the IMF that it would complete its conditions.

Earlier in the day, PM Shehbaz Sharif said that Pakistan clearly asked the International Monetary Fund (IMF) about the country’s desire to complete the ninth review of the $7 billion Extended Fund Facility (EFF).