IMF’s executive board to meet today to finalize $6bn loan package for Pakistan
ISLAMABAD (92 News) – The executive board of the International Monetary Fund (IMF) is going to hold meeting in Washington today (Wednesday) to discuss and finalize $6 billion loan package for Pakistan. Sources say the board is likely to approve $6 billion bailout package for Pakistan after it fulfilled all the conditions agreed upon during the staff level talks in the past. It is expected that the board will approve the loan, sources further say and add if approved, the IMF would expectedly release the first tranche of $500 million this month. However, sources said the global lender has also advised Pakistan to review the formula for collection of revenues under the National Finance Commission (NFC) award, including an increase in the share of federal government. The IMF has also advocated integration of taxes collected by the government. The requisite conditions come as a challenge for Pakistan, as its parliament would need to amend the 18th Amendment while Sindh strongly opposes any move in this regard. The staff level agreement was signed between Pakistan and IMF on May 12 this year. The government in its budget proposals for the next financial year has added Rs. 357 billion loans from the IMF. An IMF team will visit Islamabad every three months to review the economic indicators of the country.