International Monetary Fund (IMF) Managing Director Kristalina Georgieva Wednesday said that they are ‘close’ to an agreement with Pakistan on review, ARY News reported.
Under the $3 billion Standby Arrangement (SBA), Pakistan received $1.2 billion from the IMF as the first tranche in July.
A successful review would unlock $710 million second tranche of the loan in December.
Talking to Bloomberg, IMF chief Kristalina Georgieva said that the Pakistani authorities are implementing the program under very difficult conditions and are very ‘close’ to a deal with Pakistan.
She said that the main problem of Pakistan is tax, only 12 percent of the GDP is collected in the country, which we have proposed to increase to 15 percent.
Read more: IMF-Pakistan agreed over almost all points: sources
Earlier, it was reported, citing sources at the finance ministry that the dialogue with the International Monetary Fund (IMF) is nearing to a successful end.
“Policy level dialogue on power subsidy has also been successful,” sources said. “Caretaker government will not basic tariff of electricity, which will not be enhanced till March,” sources shared.
“The International Monetary Fund (IMF) has demanded temporary surcharge to unburden circular debt and stressed for imposition of per unit 95paisa surcharge,” according to sources.
IMF Managing Director Kristalina Georgieva stated that the IMF is ‘close’ to reaching an agreement with Pakistan on review. The $3 billion Standby Arrangement would provide Pakistan with the second tranche of $710 million in December if the review is successful. Georgieva mentioned that Pakistan’s main issue is low tax collection, which the IMF proposes increasing from 12% to 15% of GDP.
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