As the talks with the International Monetary Fund (IMF) over the $6.5billion bailout program concluded on Thursday, Prime Minister ShehbazSharif approved the deal with the international money lender saying allmatters were settled, sources said.
Sources privy to the development said the IMF delegation held a meetingwith the PM via video link which was also attended by Finance MinisterIshaq Dar. The IMF would approve the release of a $1.1 billion loan trancheafter the IMF executive board conducted the country’s economic assessment,sources added.
In order to unlock the next tranche, the lender required Pakistan toincrease levies on petrol, diesel, and gas; decrease circular debt andreform the power sector; collect up to $5 billion in funds from friendlycountries; introduce a mini-budget to increase taxes; make publicdepartments profitable; ensure compliance on privatisation scheme; andcontinue market-based exchange rate policy.
Earlier today, Mr Dar was confident that the matters would be settled withthe IMF and people would hear the “good news” shortly. He had said thegovernment was working expeditiously to enhance length and quality of roadinfrastructure in the country to facilitate economic growth and prosperity.The minister was addressing the concluding ceremony of the Road SafetyConference for Parliamentarians in Islamabad.
The minister added the government was also pursuing effectiveimplementation of the road safety laws to ensure accident-free traffic flowin the country.
Urging parliamentarians to find necessary solutions to improve road safety,he underscored the need to focus on traffic laws and ensure their strictimplementation. Mr Dar said the government had included 50 projects worthRs118.4 billion in the current fiscal year to provide safe and moderntransportation system in the country.
Read Top Stories
The finance minister pointed out that the PML-N government in the early 90sexecuted the Islamabad-Lahore motorway project and now the network ofmotorways had almost been expanded throughout the country.
On Wednesday, a delegation of the IMF had met the PM.
During the meeting, PM Shehbaz assured the international financial body offulfilling the targets given to the country. The PM was flanked by Mr Darand other officials of the finance and energy ministry. The officials ofthe energy ministry had presented the gas management plan, while thepremier briefed the IMF on the current situation of the country’s economy.