IMF imposes more severe demands on Pakistani government for release of bailout package
ISLAMABAD – The International Monetary Fund link) has slapped four more stern conditions on Pakistan, including increasing power tariffs before releasing bailout funds for cash-strapped country.
In recent developments, the global lender asked Pakistan to jack up the interest rates during the recently concluded staff-level visit and apparently, Islamabad has to unwillingly accept the strict conditions.
The IMF asked Pakistan to increase the GST rate to 25 percent on consumer goods for additional revenue, and further asked for a repayment plan to fulfill the staff-level agreement for the next loan tranche.
The global lender further asked Pakistan to liberalise exchange rate. The federal cabinet will review new demands and is likely to endorse them.
It was reported that the IMF Executive Board meeting scheduled for today will not consider approval of the bailout package as the ninth review remains pending. The next meeting of IMF officials is scheduled for March 6 and then again on March 8, 2023.
Meanwhile, Pakistani officials have called State Bank’s Monetary Policy Committee (MPC) which will be held on March 02 to decide about the Monetary Policy.