ISLAMABAD – The International Monetary Fundlink)has slapped four more stern conditions on Pakistan, including increasingpower tariffs before releasing bailout funds for cash-strapped country.
In recent developments, the global lender asked Pakistan to jack up theinterest rates during the recently concluded staff-level visit andapparently, Islamabad has to unwillingly accept the strict conditions.
The IMF asked Pakistan to increase the GST rate to 25 percent on consumergoods for additional revenue, and further asked for a repayment plan tofulfill the staff-level agreement for the next loan tranche.
The global lender further asked Pakistan to liberalise exchange rate. Thefederal cabinet will review new demands and is likely to endorse them.
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It was reported that the IMF Executive Board meeting scheduled for todaywill not consider approval of the bailout package as the ninth reviewremains pending. The next meeting of IMF officials is scheduled for March 6and then again on March 8, 2023.
Meanwhile, Pakistani officials have called State Bank’s Monetary PolicyCommittee (MPC) which will be held on March 02 to decide about the MonetaryPolicy.