There is some relief news for the neighboring country Pakistan. The way has been cleared for Pakistan, which is facing continuous cash crisis, to get the last installment of the relief package from the International Monetary Fund (IMF). Staff-level agreement has been reached with Pakistan on the final review of the IMF’s $3 billion relief package. According to Bhasha news, Pakistan, which is desperate for money, will get an amount of 1.1 billion dollars as the last installment of the package.
An IMF team visited from 14-19 March
According to the news, the International Monetary Fund said that this agreement is subject to the approval of the Executive Board of the IMF. The Executive Board of the IMF had approved a three billion dollar relief arrangement for Pakistan last year. An IMF team led by Nathan Porter visited Islamabad from 14–19 March to discuss the second review of Pakistan’s economic programme. During this period, employee level agreement has been agreed with Pakistani officials.
Improvement in economic and financial condition of Pakistan
The IMF said in a statement that the agreement recognizes the strong program implementation by the State Bank of Pakistan and the caretaker government in recent months. It also recognizes the new government’s intentions for ongoing policy and reform efforts to move Pakistan from stabilization to a strong and sustainable recovery. The global lender said Pakistan’s economic and financial situation has improved since the first review of the relief package, but economic growth remains modest and inflation is also above the target level.
Gas and electricity prices will increase
The IMF also said that Pakistan will increase the prices of gas and electricity to keep the loan at the agreed level in this financial year. The IMF said that since the second review will be held immediately after the formation of the new Cabinet, it is expected that the IMF Board will consider the review in late April. The IMF also announced that Pakistan has expressed interest in taking up a new medium-term bailout package and discussions will begin in the coming months.
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