Pakistan, IMF likely to sign loan agreement today

F.P. Report

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) will likely to sign bailout package deal as the talks have entered in its concluding phase, on Friday.

According to local news channel reports, the loan amount is expected to be around $6.5 billion for three-year duration.

Both sides holding the final round of talks today, the interest rate will be increased by 200-basis point.

The current account deficit is predicted to remain around $8 billion for the upcoming financial year of 2019-20, whereas subsidies of Rupees 350 billion will be taken back by the government.

It has been agreed that the power sector regulator, the National Electric Power Regulatory Authority (NEPRA), would be made autonomous and the government interference to take popular decisions would be minimized.

It may be noted that, the government had submitted its working plan of the fiscal year 2019-20’s budget to the fund.

In the upcoming budget the government will likely to announce Rs. 750 billion’s new taxes, the working paper suggests.

According to the budget paper, the new federal budget will likely to recommend taxes on sugar, gas and other essential commodities.

The government also considering over hike in General Sales Tax rate on sugar, while federal excise duty will likely to be imposed on gas, sources said.