Govt hopes for $5.4bn from IMF, $5.6bn from others

Published July 2, 2013
Finance Minister Ishaq Dar.—File Photo
Finance Minister Ishaq Dar.—File Photo

ISLAMABAD: Pakistan and the International Monetary Fund (IMF) are reported to have reached closer to an agreement on a $5.4 billion loan package.

The country’s economic team, led by Finance Minister Ishaq Dar, held a four-hour-long meeting with the IMF delegation, led by Jeffery Frank, on Monday to sort out details of the programme.

In addition to the $5.4bn IMF package, Pakistan will also get a $5.6bn loan from the Asian Development Bank and the World Bank as well as countries like Japan, the United States and the United Kingdom. The total volume of the loan will be $11bn.

According to a source, the IMF programme will pave the way for getting the additional loan from donor banks and the three lending countries.

“We have reduced the gap between various thorny issues,” the source claimed and said further progress would be achieved in a day or two. “The talks are moving in the right and positive direction,” the source added.

The two sides had reached an understanding on reducing the fiscal deficit target, a source privy to the meeting told Dawn.

The IMF wanted the government to reduce the fiscal deficit to 4.5 per cent over three years. The target has been left for Islamabad to decide if it wants to do it through reduction in expenditures or withdrawal of subsidies and tax exemptions.

Pakistan has also agreed to restart its privatisation programme from Sept 30. A comprehensive plan for the purpose would be ready in the next few months, the source said.

Finance Minister Ishaq Dar told journalists that the talks would continue for another couple of days. “We have had positive talks today,” he said, adding that people should wait for the results. He said he would not accept any new tax condition being attached to the programme.—Mubarak Zeb Khan

Opinion

Editorial

No time left
Updated 06 Feb, 2025

No time left

Climate change concerns continue to remain a footnote as politics dominates national discourse, surfacing only when disaster strikes.
Karim Aga Khan
06 Feb, 2025

Karim Aga Khan

PRINCE Karim Aga Khan was a man who straddled various worlds and cultures. Beyond his role as spiritual leader of ...
Cotton production
06 Feb, 2025

Cotton production

PAKISTAN’S cotton crop is on the ropes. The crop output has been falling since FY15, when the country harvested a...
Kashmir question
Updated 05 Feb, 2025

Kashmir question

The important thing is to continue dialogue process, on bilateral disputes, Kashmir issue, and move beyond rigid positions.
Letters from jail
05 Feb, 2025

Letters from jail

OVER the past week, former prime minister Imran Khan has directly addressed his concerns to both the chief justice ...
Agriculture tax
05 Feb, 2025

Agriculture tax

WITH Sindh and Balochistan finally approving changes to their agriculture income tax laws to harmonise their AIT...