Pakistan and the IMF are likely to sign a three-year bailout package today (Friday).
The IMF’s delegation arrived in Pakistan on April 26 and has been here for 11 days. After multiple meetings with government officials, including officials from the provinces, it seems the package is finally ready.
It is expected that a three-year $6.5 billion package will be given to Pakistan. The government has already accepted most of the IMF’s terms, including increasing gas and electricity prices.
The new governor of the State Bank of Pakistan, Reza Baqir, will sign the agreement on Pakistan’s behalf.
From July 1, electricity is going to get more expensive and Rs600 billion in taxes will be imposed. The subsidy on electricity is being done away with except for consumers using less than 300 units and industries.
In the next stage, gas prices will be increased.
Another major point is that national institutions operating in a loss will be privatized. The privatization of national industries (like PIA and the steel mills) has been a hotly contested topic.
The IMF wants to see a decrease in the budget deficit.
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