Pakistan, IMF reach agreement on $6 billion package: finance adviser
By Trend
Adviser to Pakistani Prime Minister on Finance Dr Abdul Hafeez Shaikh announced on Sunday that Pakistan and the International Monetary Fund (IMF) has finalised an agreement on a package worth $6 billion for a period of three years, Trend reported citing Geo.tv.
Speaking on the state tv, the financial adviser said that Pakistan has reached a staff-level agreement with the financial body, and further working on it will continue after the IMF's executive board's approval.
"The country is waiting final nod from the board of directors from Washington," he said.
"The IMF team have reached a staff-level agreement on economic policies that could be supported by a 39-month Extended Fund Arrangement (EFF) for about US$6 billion," the IMF announced in a press release.
IMF to support structural reform agenda
The IMF in its press release said that it aims to support the federal government's structural reform agenda during the next three years.
"This includes improving public finances and reducing public debt through tax policy and administrative reforms to strengthen revenue mobilization and ensure a more equal and transparent distribution of the tax burden," it said.
'Cost-recovery in energy sectors and state-owned enterprises'
The IMF said that a comprehensive plan for cost recovery in the energy sector and state-owned enterprises will pave the way for the government to reduce the fiscal deficit draining the government resources.
The body said that the coming budget will be aimed for a primary deficit of 0.6 percent of GDP supported by tax policy revenue mobilization measures to eliminate exemptions, curtail special treatments, and improve tax administration.
Improve targeted subsidies, scale up BISP