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ISLAMABAD – Pakistan is gearing up for talks on new long term bailout programme, and now International Monetary Fund (IMF) technical team arrived in South Asian nation to negotiate terms.
The cash-strapped country is seeking initial discussions on a new long-term loan program worth $6-8 billion with Pakistan.
Reports in local media said members of the IMF mission have arrived in Pakistan, while the head of the mission is likely to arrive in the country on May 16.
IMF demanded incumbent authorities to immediately cut its expenditures by Rs163 billion to achieve a primary budget surplus. The global lender reiterated its old demand, saying there would be no compromise on the target of 0.4pc of GDP for the primary budget surplus.
This issue comes as FBR briefed IMF, saying that it could face a shortfall of Rs163 to 183 billion in tax collections by the end of the current fiscal year.
FBR also assured IMF that it will collect up to Rs25 billion by taking administrative measures under Statutory Regulatory Order 350.
Pakistan is expected to get $5 billion rollover from Saudi Arabia, $3 billion from the UAE and $4 billion from China.
The country of over 240 million avoided default in 2023, and its $350 billion economy stabilized after completing last IMF program. Despite relief, the country still faces a significant fiscal deficit.
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