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Pakistan agrees to increase policy rate of banks loans up to 2% on IMF demand

Pakistan agrees to increase policy rate of banks loans up to 2% on IMF demand
February 25, 2023 Web Desk

ISLAMABAD (92 News) – Pakistan has agreed to increase the policy rate of the banks loans up to two percent on the demand of the International Monetary Fund (IMF).

According to sources in the Finance Ministry, deadlock still persists over the circular debts. The IMF had asked the Pakistani authorities to reduce the circular debts to Rs2,400 billion. Further delay is likely in the staff level talks if the matter is resolved.

The IMF, according to sources, has asked Pakistan to further increase the power tariff by imposing a surcharge of Rs3.90 per unit.

The Pakistan government sought more time for talks with the power companies. However, the IMF has sought the final decision on surcharge by Wednesday. The government has sought time to resolve the matter.