The International Monetary Fund (IMF) has released the Pak loan agreementterms.Under the agreement, the government will not issue a new tax amnestyscheme, tax exemptions or tax incentives while agriculture and constructionwill be taxed.
According to the pack, expenditure on salaries and pensions will be reducedwhile expenditure in the energy sector will be limited and subsidies to theenergy sector will be gradually reduced.
It added funding for sponsorship programmes like BISP will be increased andthe central and provincial governments will increase funds in the welfaresector.
As per the agreement, a monitoring report of government institutions willbe issued and the law on better governance in the institutions will beactivated.
The difference between the open and interbank rates of the dollar will notexceed 1.25 per cent and in 2024, the electricity price hike notificationwill be issued.
The IMF hailed the recent policy rate hike as optimistic while Pakistanneeds to keep the monetary policy rate tight and Pakistan has to tightenmonetary policy.
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Pakistan must adjust the exchange rate to the market and the autonomy ofthe State Bank is essential, the IMF deal underlined, adding that to reduceinflation, monetary policy should be tightened.
During the current financial year, the primary surplus will be kept atRS401b. According to the agreement, restrictions on imports will belifted. Pakistan has given concrete assurances to increase revenue.
Last week, the IMF approved a 9-month Stand-By Arrangement (SBA) forPakistan for an amount of about $3 billion days.
Pakistan received $1 billion from the United Arab Emirates (UAE) as part ofits financial commitment to help Pakistan secure the IMF bailout package.