Pakistan, IMF bailout agreement expected 'soon'

ISLAMABAD: The federal government has commenced discussions to fulfil the demands put forth by the International Monetary Fund (IMF), signaling a potential revival of the loan program with the IMF, ARY News reported on Saturday.

Prime Minister Shehbaz Sharif and the Finance Minister Ishaq Dar mobilized for a major breakthrough after which, Pakistan is likely to revive the loan program with the International Monetary Fund.

Sources claimed that the Pakistan has started changes upon the demands of the IMF and changes are being made in the ‘s budget speech.

Sources revealed that Finance Minister has started reviewing the International Monetary Fund demands in the budget framework and discussions have begun to address the IMF’s concerns before obtaining parliamentary approval for the budget.

READ: SBP lifts all restrictions on imports to fulfil IMF condition

It should be noted that the International Monetary Fund had demanded a reconsideration of the budget framework before parliamentary approval of the budget.

While putting pressure to withdraw the scheme for bringing back one million dollars from those earning abroad and pushing for amendments. The government had provided the scheme to not inquire about the source of income for those bringing one million dollars annually.

According to sources, the IMF had also demanded an increase in 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.