ISLAMABAD – International Monetary Fund has demanded strict conditions fromPakistan over bailout package.
IF is demanding further adjustments in the monetary policy, exchange rateand a 22% increase in power tariff to control the circular debt.
Pakistan and International Monetary Fund (IMF) made contact through videoconferencing on Thursday, confirmed government officials.
Both the IMF and Pakistani side, on Thursday night, confirmed that theymade efforts to inch towards evolving a consensus on the next bailoutpackage for Pakistan’s struggling economy.
The Delegations of the Pakistani government and International Monetary Fund(IMF) discussed various terms regarding the unavoidable bailout package inview of the worsening economic crisis, claimed media reports. IMF remainsas the last resort for Pakistan.
According to different sources, Islamabad’s wishes to get the loan approvedby January 15th may not be satisfied as the Fund wanted Islamabad to adoptsteeper measures before its case could be sent for approval to theExecutive Board of the IMF.
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Asad Umar informed the IMF about the recent developments on the exchangerate and the monetary policy.
The local currency was devalued by Rs. 4 (3.0 percent) to Rs. 137.7 to adollar by the State Bank. It also increased the interest rates by 1.5percent, reaching 10 percent.
The IMF called for a 22% hike in power tariff to address the problem ofcircular debt and even though the government has already raised them by Rs.1.27 per unit but the notification hasn’t yet been issued yet.
