ISLAMABAD: A staff-level agreement between the International Monetary Fund (IMF) and Pakistan has been reached, in accordance of which, the steps required for the sixth review of the economy were outlined.
“The Pakistani authorities and IMF staff have reached a staff-level agreement on policies and reforms needed to complete the sixth review under the EFF,” read the statement by IMF.
According to the statement, Pakistan has not met all the conditions required for approval by the Executive Board of IMF. To achieve the primary surplus, Pakistan will have to bring a mini-budget.
The government has increased the petroleum prices by Rs. 4 per litre, electricity by Rs. 1.68 per unit and interest rates by 1.5 per cent to achieve the IMF conditions. It is expected that the authorities will further hike the interest rates.
Because of the suspension, the two-year cumulative loan will amount to $3 billion, even if the IMF loan of $1 billion is approved. The amount decided in May 2019 was greater than what Pakistan has received.