ISLAMABAD: International Monetary Fund (IMF) has approved second tranche of $553 million for Pakistan and asked to increase electricity tariff, ARY News reported.
According to Federal Finance Minister Ishaq Dar, Pakistan would receive the approved $553 million tranche of IMF on Monday and also confirmed to consolidate fiscal adjustments, boost external buffers and deepen structural reforms.
He said that Pakistan would pursue structural reforms agreed with the IMF. Even if there were no IMF conditions, Pakistan should pursue structural reforms in order to obtain growth on a sustained basis.
At this difficult time, this approval will help boost the country's foreign currency reserves held by the State Bank of Pakistan to close to $4 billion.
The foreign currency reserves had declined to below $3 billion a few days ago and within last 10 days the reserves shot up by $1 billion and touched the $4 billion mark.
Ms. Nemat Shafik, deputy managing director and acting chair said that increase in power tariff is necessary to lowdown the load of subsidy on government but the low class will not be affected by the increase.