IMF, Pakistan reach $3bn staff-level agreement

ISLAMABAD: International Monetary Fund (IMF) on Friday, announced that a “Stand-By Arrangement” between the global money lender with Pakistan has been reached successfully, ARY News reported.

According to the details, a staff-level agreement has been concluded between Pakistan and the IMF, valuing $3 billion for 9 months.

IMF Mission Chief Nathan Porter along with his team maintained continuous communication with Pakistani authorities and completed the agreement through virtual negotiation.

Regarding the agreement, IMF Mission Chief Nathan Porter has said that the staff-level agreement with Pakistan has been made under a Stand-By Arrangement for 9 months.

READ: Pakistan ‘hopeful’ of IMF deal as loan programme set to expire tomorrow

The final approval of this agreement will be given by the IMF’s executive board, which is expected to take place in mid-July. After this approval, Pakistan can receive a loan of $3 billion.

Nathan Porter further stated that Pakistan’s parliament played an important role in achieving economic goals and took significant steps to increase tax revenues. The parliament has increased funds for Benazir Income Support Program and limited exemptions in taxes.

IMF Mission Chief stated that the increase in tax revenues can result in a primary surplus of 0.4 per cent for Pakistan’s economy and the additional funds generated through increased tax revenues can be allocated to social sectors.