International Monetary Fund (IMF) Resident Representative for Pakistan Esther Perez Ruiz said Islamabad plans to raise fuel prices for wealthy drivers to pay for subsidies for the country’s low-income population. had not consulted a global lender before Tuesday.
“Fund staff are seeking further details regarding the operation of the scheme, costs, targeting, safeguards against fraud and abuse, and offsetting measures, and are discussing these elements carefully with the authorities,” Ruiz said.”
The IMF also said Pakistan has made substantial progress toward meeting its policy commitments, which require the cash-strapped country to access billions in debt to avoid default. Do it.
Islamabad has taken tough decisions to restart a $6.5 billion IMF loan deal. The austerity measures include raising energy prices and taxes and allowing the rupee to weaken. The funds received from the Washington-based lender will provide some relief to the country’s sagging economy, which has been affected by one-third of its region due to devastating floods. The loan will also help Pakistan recover from the economic crisis as general elections are approaching this year.
“An agreement will be reached at the staff level once the remaining few points are closed,” said the IMF’s resident representative for Pakistan.
He added: “Ensuring that sufficient funding is provided to the authorities to support the implementation of their policy agenda is a top priority.”
According to Finance Minister Ishaq Dar, the IMF – before signing off on the bailout package – tried to see that Pakistan’s friendly countries fulfilled their commitments to help shore up its finances.
By June, Pakistan will have to repay about $3 billion in debt, and another $4 billion is expected to be repaid.
