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IMF’s executive board approves $6bn package for Pakistan


WASHINGTON DC: The executive board of the International Monetary Fund (IMF) is expected to decide the fate of the proposed $6 billion bailout package to Pakistan here on Wednesday.

A staff agreement was signed between the government and the IMF on May 12. In a meeting scheduled to take place later today, the IMF will give its final nod to the agreement under which Pakistan will receive the loan payment in three years under the extended fund facility.

The final budget measures passed on Friday by the Upper House, along with a report on compliance with all prior actions, will be the key elements in the board’s final decision.

The approved version of the budget and finance bill are expected to be transmitted to the fund.

The government, in its budget proposals for the next financial year, has added Rs357 billion loan from the IMF.

An IMF team will visit Islamabad every three months to review the economic indicators of the country.

According to government sources, it has already fulfilled all the prerequisites.

The Economic Coordination Committee (ECC) has given the approval to increase the natural gas prices, which was one of the conditions.

The ECC also approved to hike the natural gas tariff for domestic consumers by 190 percent and on average 31 percent for all other categories.