IMF MD says close to striking a deal with Pakistan, expects agreement next week

ISLAMABAD (92 News) - International Monetary Fund Managing Director Kristalina Georgieva has said that they are close to striking a deal with Pakistan, hoping that the agreement will be inked next week.

In an interview with Bloomberg on Wednesday, she said that the Pakistani authorities, including the caretaker finance minister, are implementing the programme in a very difficult situation.

"The biggest problem being faced Pakistan is tax. Only 12 percent of the Gross Domestic Product (GDP) is collected in taxes. We have proposed to increase the tax volume by 15 percent," he maintained.

According to sources, it has been agreed in the talks that the interest rate will not be increased. Up to Rs55 billion will be collected by imposing 40 percent windfall tax on the profits of the banks.

The draft of the agreement will be finalized today.