IMF Talks: Pakistan consents further tightening of monetary policy

ISLAMABAD: Pakistan has consented over further tightening the monetary policy, citing finance ministry officials, ARY News reported on Saturday.

According to sources, a virtual meeting held between the IMF and Pakistani officials late last night.

The officials of the International Monetary Fund (IMF) thoroughly reviewing every point in the negotiations, officials said.

“The talks are now restricted to only technical level,” according to the ministry officials.

“Pakistan has consented over further tightening the monetary policy,” sources said.

“The policy rate could be further increased with tightening of the monetary policy,” the ministry’s officials said.

“The policy rate will likely to be enhanced by two percent in tandem with the inflation rate,” according to an analyst.

“Moreover, details are being decided over the power sector issues, and the staff level agreement will be reached after these issues will be decided,” officials said.

According to officials, Pakistan has given detailed briefing to the IMF with regard to foreign exchange receipts until June,” officials said.

The Fund’s officials also holding talks with the countries from which foreign exchange will come.

“Pakistan has to ensure keeping foreign exchange reserves equal to two months imports till June,” sources said.

“The monetary policy board of the State Bank of Pakistan will take final decision about the interest rate,” sources added.