ISLAMABAD – Pakistan has prepared a formal application to apply for astringent International Monetary Fund’s (IMF) loan programme as staff-levelagreement is expected to be announced on Friday. The proposed bailoutpackage is expected to range between $7-8 billion.
State Bank of Pakistan Governor Raza Baqir will today send a draft to theIMF representatives.
On Wednesday, both sides agreed that the country would withdraw taxexemptions amounting to Rs700 billion within two years.
The two sides also agreed that Pakistan would increase costs of electricityand gas for the consumers in the next budget. However, reforms in the taxand energy sectors have been outlined in the list of top priorities.
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According to sources, the government will have to reduce subsidies and takeRs340 billion from consumers in the energy sector only.
Moreover, the SBP would be able to regulate exchange rates independently,and the rate of US dollar would be set without any pressure from thegovernment.
