Pakistan likely to sign staff-level agreement with IMF

ISLAMABAD, Jun 26 (DNA): Pakistan is likely to sign the staff-level
agreement with the International Monetary Fund (IMF) on Jun 27.

According to sources, Pakistan has met 90 percent conditions for the
staff-level agreement with IMF.

Sources said that Pakistan has also abolished the scheme to bring $0.1
million to the country annually and the interest rate has been increased
by one percent. The basic interest rate has been hiked from 21 percent
to 22 percent.

The memorandum of economic and financial policies which includes nine
tables has been sent to IMF and the financial experts of the IMF will
analyze the memorandum now, sources added.

Source further revealed that talks for the staff-level agreement will
take place tonight and Finance Minister Ishaq Dar will finalize the
staff-level agreement with the IMF.

Earlier, Federal Minister for Finance and Revenue Ishaq Dar said that
Pakistan has fulfilled all necessary conditions of the International
Monetary Fund (IMF) and “no hurdle is now left” in the signing of a
staff-level agreement.

He noted that the government has introduced a number of changes to its
fiscal 2024 budget in a last-ditch effort to clinch a stalled rescue
package with the international lender.

For the fiscal year starting next month, the federal government will
raise a further Rs215 billion in new tax and cut Rs85 billion in
spending, as well as a number of other measures to shrink fiscal
deficit, he said.

It is pertinent to mention here that Prime Minister Shehbaz Sharif met
with IMF Managing Director Kristalina Georgieva on the sidelines of the
Global Financing Summit in Paris.

During the meeting, the two exchanged views on the ongoing programs and
cooperation between Pakistan and IMF. Recalling their recent telephone
conversation on 27 May 2023, the premier apprised Ms. Georgieva of
Pakistan’s economic outlook.