Pakistan 'agrees' to IMF's demands for revival of loan programme

ISLAMABAD: Pakistan has hinted at addressing the concerns put forward by the International Monetary Fund (IMF) in the federal budget for FY2023-24, ARY News reported, citing sources. 

Pakistan’s efforts are underway to restore the stalled loan programme with the IMF and the breakthrough is likely within two days. 

According to sources, Pakistan has decided to address the IMF’s concerns in the budget.

Sources claimed that Pakistan has started changes upon the demands of the IMF and changes are being made in the budget speech. Pakistan has once again provided working to the IMF on $6 billion in external financing.

Sources say the IMF’s demand for collecting more than Rs215 billion from the people has been accepted by the federal government.

Read more: SBP lifts all restrictions on imports to fulfil IMF condition

The IMF has asked Pakistan to abolish subsidies for the textile sector and increase electricity tariffs, the sources said. 

According to sources, the IMF had also demanded an increase in the petroleum levy, suggesting that the authority to increase the petroleum levy should be given to the Cabinet instead of the Parliament.

In addition, the IMF had demanded a reduction in subsidies and further reduction in federal government expenses, as well as a limitation on electricity subsidies.